The S&P 500 gained 0.30% last week, with the Russell 3000 rising 0.41%, Growth stocks trailed for a change in the relative performance race. The Russell 3000 Value index climbed 0.70%, compared to a 0.12% advance for the Russell 3000 Growth index.
Apple (AAPL) and its suppliers are taking a hit this morning following rumors that iPhone sales are going to fall far short of expectations – 25m v. 50m units projected. Sources are citing two reasons for the lack luster sales – the price point and lack of innovation on the new phones.
We have an open alert on the SPY that should de very well but we have had to remove the stop loss because of AAPL falling about 3% premarket and dragging the markets down.
Next year is projected to continue the bull run for 2018! Incredible but the tax breaks for corporations and the global positive outlook for GDP is strong. We will start earning season in early January and the will give us a peak at what’s to come.
In the year ahead we have our eyes on several equities to include FedEx (FDX) restructuring has improved customer preference for more economical ground deliveries. The company invested aggressively in its ground network, enabling it to grow at very rapid rate. Within its three major business segments – Express, Ground and Freight – the company has proven extremely smart at optimizing profits. FDX trades at just 17x the estimates for 2018 EPS - a significant discount.