Monday's big Apple rally

For weeks, Apple shares have languished, waiting for someone, anyone to shout out 'Buy!' They got their wish Monday, and the stock market soared with it.

By Charley Blaine Nov 19, 2012 7:33PM
What everyone is telling us Monday is that the stock market had its best one-day gain in more than two months because of hope that a fiscal cliff deal will get done before the end of the year.

That was part of the reason for Monday's big rally. But let us praise the huge effect that Apple's (AAPL) gain of $38.05 to $565.73 had on the market. It was responsible for half the 61-point gain of the Nasdaq-100 Index ($NDX) and a point or so of the 27-point gain of the Standard & Poor's 500 Index ($INX). It helped Intel (INTC), which opened by falling to $19.73, a 52-week low, on news that CEO Paul Otellini is retiring early. Intel rebounded to finish at $20.25, up 6 cents.
Cirrus Logic (CRUS), Broadcom (BRCM) and Nvidia (NVDA), key suppliers for a host of Apple products, all surged.

And when the day was done, The Dow Jones industrials ($INDU) had jumped 208 points to 12,796, its highest close since Nov. 12, when the blue chips closed at 12,185. The S&P 500's finish at 1,387 was its best since Nov. 7, and the Nasdaq Composite Index ($COMPX) closed at its highest level since Nov. 7, up 63 points to 2,916.Stock market

The major averages had their best one-day gains since Sept. 6.

Apple had been slumping rather visibly lately on worries about the iPhone 5, a new mini-iPad and a messy management shakeup.

Between Sept. 19's closing peak of $702.10, the stock had fallen to as low as $505.75 on Friday, wiping out as much as $184.7 billion of market capitalization -- roughly equal to the market caps of one Procter & Gamble (PG) or two McDonald's (MCD).

Apple was trading as much as 12.4%  below its 200-day moving average, a clear sign of investor worry, and its relative strength index, a measure of momentum, finished Thursday at 14. A reading below 30 means a stock is oversold.

The question wasn't if Apple would rebound. Only when. And "when" was Monday.

To be fair, there were other factors responsible for Monday's rally. The good vibrations about coming up with a solution to the fiscal cliff was one reason. Materials stocks moved higher as gold (-GC) jumped $19.70 to $1,734.40 an ounce.

Energy shares rallied as crude oil (-CL) in New York surged $2.36 to $89.28 a barrel as speculators bet that the tensions between Israel and Hamas could spread. Chevron (CVX) rose $1.05 to $104.35. Exxon Mobil (XOM) was up $1.22 to $87.67.

IBM (IBM), Chevron, Caterpillar (CAT), Verizon Communications (VZ), United Technologies (UTX) and Exxon Mobil contributed a combined 85 points to the Dow's gain.

And two reports on housing -- existing home sales and homebuilder confidence -- both were better than expected. Homebuilding stocks were up, with Ryland (RYL) an exception.

Will the rally continue tomorrow? It depends on a couple of things:
  • How markets react to Moody Investors Service's downgrade of France to Aa1 from AAA,
  • How markets react to earnings from Hewlett-Packard (HPQ), due before Tuesday's open.

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23Comments
Nov 19, 2012 8:32PM
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Charley......I miss your Market Dispatches, Dude.

 

What is Microsoft or MSN doing...?

Nov 20, 2012 11:39AM
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We just reposted yesterday's notes after the close....MSN seems to be acting up, hopefully not the other sites....This morning we are down as expected...This markets are still oversold despite yesterday's gains but we were well aware manipulators would open up by selling off....We've recovered a bit, down about 25 points on the DOW....Long way to go...See if something good can be done...More later.
Nov 20, 2012 11:57AM
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i wonder if INSIDE the MSN offices all the regular posters were spending too much "work time" on these boards? 
Nov 20, 2012 3:25PM
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We were rolling along, then the Fed spoke and scumbags used is as an excuse to sell off (not that they need any excuses), so we are dropping now...Just in case, this has nothing to do with profit taking, this is pure market manipulation...We are still very oversold despite yesterday...Oh well, we still have a bit over 90 minutes to go...We will see what can be done if any.
Nov 20, 2012 5:38PM
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These articles are getting harder and harder to find.
Nov 20, 2012 11:33AM
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What we had today was an oversold bounce and a nice one at that....Manipulators had no choice but to hide, at least for a day....Noticed the village idiot was out of the country? Was it a coincidence? You decide...Tomorrow is another day though...We will see if we can follow through.
Nov 20, 2012 11:46AM
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Kinda think the changes here, (not that many) is just somewhat a monetary decison by Microsoft or MSMoney....Many of the other Columns are intact for the time being and Market following,along with equity reports are still in place....But seems to be pointed towards more short term shock value, then plain or boring Market reports.

Guess that may be the readers request? Short term memory and excitement for a short term high...

Seems to be prevalent in our Society today..

History is falling by the wayside....And way too many don't care..If they are interested, they just plug it into their tablets and accept what is said or written within the last few years.  

Nov 19, 2012 11:40PM
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Buy Apple !  SUCKERS RALLY ! This market is DEAD ! The Smart Money/Big Boys have left the house ! The small investors=There is a sucker born every day=You will lose your money =FRAUD STREET=TAKE YOUR MONEY AND RUN !
Nov 20, 2012 12:01PM
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Yes MSN, was SCAGGY yesterday...Maybe too much activity or some other change overs..??

 

Profit taking today ?? Sure why not..Many Equities were up 3-7% yesterday...

Hard for busy traders or HFT platforms not to notice that..?

 

And others are certainly, or probably positioning themselves for an inevitable dividend tax increase..

Just kinda makes sense..

But hang in, because I expect a NICE December is coming and I don't think it will wait until after the first of the Year...As usual Santa Claus with a sleigh full of surprises,might be on his way.. ?

Nov 20, 2012 4:48PM
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"Disagree slightly...VL;"

Invites welcome counterpoint! Point A) Yep, America has pretty well made it clear that we are done with GOP games and there are many of them. Is it a lack of rhetoric and plain out-- fear? Point B) Why bother with some half-helping tax adjustments? The crisis is far larger than feeble legislation coated with legalese will fix. Point C) FIX something. FIX it completely. If you can't-- leave; leave the paycheck on the table. Point D) Not strangely, real Americans don't assume your vote by the color of your skin but a lawn sign illuminates a whole lot more than many think. You realize that a ROMNEY sign on the lawn and AMAZON boxes in your garbage don't suggest honest Americans.

I'm not aiming all that at you but I don't see Congress doing in a few days what needed 4 years. A guy named Norquist and his autograph book need updated passports. Nobody said Obama was the new Messiah, but cooperation with his fresher ideas would have at least steered us clear of the cliff. 
Nov 20, 2012 2:59PM
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Disagree slightly...VL; Congress will be putting a gun or already have to their heads, IF THEY don't act and act responsibly....I am fed up and so is America; At least well over half..

2014 Americans and people like me will be more then ready to pull the trigger if they don't or they fail to quit playing childish games....They know it's coming...And They know we are ready.

 

It's quite noticeable that a lot of the Political Rhetoric is gone....As it should be..

Anyone still hanging onto failed past principles...Will only fail themselves.

Funny thing, is we may not have voted for Obama; If it hadn't been for the hatred and stupidity that had been apparent...But ALSO, the Republicans had made a very foolish choice in my Opinion.. 

Strangely we had black friends, or mixed couples that voted for Romney..I don't question how/why someone else votes..I'm just glad they vote..

Nov 20, 2012 1:55PM
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I wonder what the Mutual Fund managers are going to do with gains or losses coming up ??

I'm sure they will find ways to line their pockets with Gold and pass any tax burdens onto holders...

Compare costs and fees of 2012...To any from the last couple of years.

Nov 20, 2012 11:23AM
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More like an Election Correction to me...Not much displeasure,just showing they could do it.

CGT could ramble on about scumbags and manipulators...But, they have not changed the trends if we go back over 13,000 and beyond...

In Obama's second term we should do well...

Positive indicators are as good as negative ones.

Conflicting probs in Middle East....not much to effect Oil, only perception.

We end our Wars....Let the other bastards kill each other, I don't care anymore..

I'm tired of supporting their useless causes.

Working across the aisle finally, puts us on a firmer footing and stability..

Consumers and Americans are feeling better and seeing something besides an on-coming train at the end of the tunnel...

Nov 20, 2012 1:50PM
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Yup Steve....A lot of pooh,poohs when USA Today hit the streets....

Use to start picking it up just because it looked REFRESHING...Not the same old mundane stories day in and day out...Covered all the bases around the World in snippets and not in feeble attempts to win  Pulitzer prizes...Good concise coverage on Sports and World events and Important features Domestically..I slowly got away from reading Big City rags..That were starting to get expensive.

Of course I was somewhat cheap and would pick up out of piles in restaurants or toss-aways...

Made coffee breaks and lunch interesting....I was on the road a lot and mostly ate in out of the way places, except morning coffee or breakfast..? Have eaten in hundreds of stops and someplaces over a thousand times...Denny's one time was my quickest breakfast stop, was on my way to a meeting about 90 miles away....In and out in 12 minutes....And did not eat in a hurry...Coffee,water and Bisquits and Sausage Gravy...Refill on coffee. and color me gone...No paper. 

Nov 20, 2012 11:34AM
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year end juggling going on. 

 

positioning for some january 2nd take off? 

 

people cashing in stocks for potential tax hits? 

 

 

Nov 20, 2012 2:39PM
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"WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke on Tuesday urged Congress and the Obama administration to strike a budget deal to avert tax increases and spending cuts that could trigger a recession next year.

Without a deal, the measures known as the "fiscal cliff" will take effect in January.

Bernanke also said Congress must raise the federal debt limit to prevent the government from defaulting on Treasuries debt. Failure to do so would impose heavy costs on the economy, he said. Bernanke said Congress also needs to reduce the federal debt over the long run to ensure economic growth and stability."


You realize that the markets themselves need to reconcile to extract the fluff and deflate this bubble because it inflated it. You can't have this much economic collapse and robust investing at the same time. It goes well beyond taxing the rich... the rich need to put it back into the economy post haste or the bulk of wealth gets erased. Go claim a failing city, change it's name and invest it back to health. Fire the likes of Meg Whitman who lives for paper but missed a $8 billion cardboard cut-out acquisition. Reduce paper and button pushing to Minimum Wage and call out the MBA degree as bogus. Everybody is waiting for Congress to act. It can't. No one in it will put a gun to their own head. The best we could hope for is half-the-job done. I didn't create the label- "grubber" for nothing. People are reading this and saying "yea, right". No, loser... yea WRONG. 

Nov 20, 2012 1:59AM
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Take care Re tog......What is going on?  Looks like the boards are done??
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