Apple is no longer following the pack, but it’s no leader of the pack, either.
Shares of the iPhone and iPad maker have surged since last week’s investor-friendly announcements, when the company added $30 billion to its stock-buyback plan, raised its dividend about 8% and declared an unusually large 7-for-1 stock split.
The moves came as the company reported first-quarter earnings that showed strong iPhone sales, even as some Apple-watchers had expected to see signs of a slowdown.
Shares have risen 12% over the past three days, including an 8% jump the day after Apple’s quarterly report. Meanwhile, the Nasdaq Composite has slumped about 3% over the same time frame and is leading the broad market lower on Monday.
Apple is the biggest component of the tech-heavy Nasdaq.
Here’s a chart overlaying Apple and the Nasdaq over the past month, which really illustrates the sharp divergence between Apple and the Nasdaq over the past week.
This second chart shows Apple and the Nasdaq on a year-to-date basis.
The question, of course, is whether Apple’s strength will be able to give the broad market a lift. Internet, biotech and social media stocks have been the big drivers of the Nasdaq’s decline in recent weeks. Monday appears to be no different, with the Nasdaq down about 1% as those aforementioned sectors keep declining.
Looks like the market will need more than one bright Apple before being able to generate a significant turnaround.
via apple - Google News http://ift.tt/S5IbQS
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