October 13, 2020
Wall Street kicked off earnings week by posting solid gains across the board, led once again by Apple (gaining 6.4% on the day). The Dow and S&P 500 rallied 250.62 and 57.09 points, or +0.88% and +1.64%, respectively. Ten of the 11 sectors of the S&P 500 were positive, led by technology which gained 2.72%. The NASDAQ surged 296.32 points on the day, or +2.56% for its fourth straight positive day and its best single day since September 9.
Apple’s long-awaited iPhone launch – which was delayed until October due to the coronavirus – happens today and Wall Street expects the event to be “the most significant iPhone event in years,” said Katy Huberty of Morgan Stanley. Apple is expected to release new iPhones with 5G cellular networks, which promises faster download times.
Some signs are now re-emerging in the stock market similar to what happened in late August and early September, when the S&P 500 peaked and then experienced a roughly 10% correction. “U.S. equities are surging on light volume (again), and we are seeing some of the same “signs of froth” emerging that we saw in early August,” Chris Murphy, co-head of derivative strategies at Susquehanna Financial Group, wrote on Monday. “This does not mean imminent downside, because as August showed the markets can remain frothy for a while, but this is something to watch.”