Apple’s Stock Clears $700 — Tuesday’s IP Market Recap

by Marc Bastow | September 18, 2012 5:10 pm

Apple’s Stock Clears $700 — Tuesday’s IP Market Recap

IPMarketRecap Apples Stock Clears $700    Tuesdays IP Market Recap[1]Up a little, down a little, up a little … you get the idea. It feels like if not for the strength of Apple (NASDAQ:AAPL[2]) — OK, and the Fed’s underlying hand in the economy and, thus, investor mind-set of investors — all heck just might break loose to the downside.

Still, the cycle hasn’t broken yet, so stocks wallowed in a fairly tight range for the day before settling in with mixed results. The Dow gained fractionally to finish at 13,564, the S&P fell 0.13% to 1,459 and the Nasdaq ended down marginally at 3,177.

Still cruising on anticipation of this week’s iPhone 5 launch[3], Apple walked the fine share line of $700 before driving it home and finishing at a new all-time high of just less than $701.91.

At this point, Apple has enjoyed more than 2 million pre-orders for the iPhone 5[4], and expectations are they could sell as many as 20 million units this quarter, according to[5] ValueWalk, and potentially 46 million during the holiday season[6].

Apple’s market cap of $655 billion represents 13% of the Nasdaq and 5% of the S&P 500, so a price of over $700 is more than just symbolic. Analysts are already reconsidering valuations, and Bank of America (NYSE:BAC[7]) raised its target price on the stock to $850 per share — a full $100 above its previous targets.

Meanwhile, back on planet Earth, FedEx (NYSE:FDX[8]) released disappointing earnings[9] and once again warned Street analysts and shareholders that a weak economy will hold down future results — this time for the current quarter and full fiscal year. Shares were handed a 3% loss on the day.

Chipmaker Advanced Micro Devices (NYSE:AMD[10]) was pummeled, losing nearly 10% on the day[11] after company CFO Thomas Seifert announced his departure after three years in the job. A hoped-for turnaround led by Rory Read, who took the reins about a year ago, has not materialized, with AMD shares nearly halved in the past 52 weeks.

The pain in the coal industry[12] continues as Alpha Natural Resources (NYSE:ANR[13]) announced it will close eight mines[14] across West Virginia, Virginia and Pennsylvania to help trim expenses. Nearly 9% of the company’s employees will be affected once the mines are closed and layoffs begin.

Shares of battery manufacturer Energizer (NYSE:ENR[15]) surged as the company announced plans to restructure its operations in an effort to save up to $200 million annually in expenses. ENR also said it will keep its earnings guidance numbers in place, and anticipates higher per-share earnings year-over-year. Shares closed more than 10% higher.

Finally, just a friendly reminder that it’s National Cheeseburger Day[16]. Hopefully, one of those beef ‘n’ cheese beauties is somewhere just down your road.

Earnings reports for Wednesday include AutoZone (NYSE:AZO[17]), General Mills (NYSE:GIS[18]), and Cracker Barrel (NASDAQ:CBRL[19]).

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long AAPL.

Endnotes:
  1. [Image]: http://www.investorplace.com/hot-topics/investorplace-market-recap/
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. this week’s iPhone 5 launch: http://investorplace.com/2012/09/apple-iphone-5-reveal-bigger-faster-available-sept-21/
  4. more than 2 million pre-orders for the iPhone 5: http://investorplace.com/2012/09/monday-apple-rumors-2-million-iphone-5s-sold-in-24-hours/
  5. according to: http://www.valuewalk.com/2012/09/apple-logs-over-2-million-iphone-5-pre-orders-in-first-day-of-sales/
  6. 46 million during the holiday season: http://investorplace.com/2012/09/tuesday-apple-rumors-apple-to-sell-46-5m-iphone-5s-in-q1/
  7. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  8. FDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=FDX
  9. released disappointing earnings: http://investorplace.com/2012/09/fedex-profits-fall-forecasts-look-gloomy-fdx/
  10. AMD: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMD
  11. losing nearly 10% on the day: http://investorplace.com/2012/09/amd-short-circuits-on-c-suite-departure/
  12. pain in the coal industry: http://investorplace.com/2012/09/the-canary-in-coal-stocks-xom-sni-btu-cvx-aci-bcs/
  13. ANR: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANR
  14. close eight mines: http://investorplace.com/2012/09/coal-producer-closing-8-mines-cutting-1200-jobs/
  15. ENR: http://studio-5.financialcontent.com/investplace/quote?Symbol=ENR
  16. National Cheeseburger Day: http://investorplace.com/2012/09/sit-down-and-eat-its-national-cheeseburger-day-mcd-bkw-wen-jack-rt/
  17. AZO: http://studio-5.financialcontent.com/investplace/quote?Symbol=AZO
  18. GIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GIS
  19. CBRL: http://studio-5.financialcontent.com/investplace/quote?Symbol=CBRL
  20. NII: http://studio-5.financialcontent.com/investplace/quote?Symbol=NII
  21. VRA: http://studio-5.financialcontent.com/investplace/quote?Symbol=VRA
  22. ANGI: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANGI
  23. GDP: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDP
  24. NILE: http://studio-5.financialcontent.com/investplace/quote?Symbol=NILE
  25. YELP: http://studio-5.financialcontent.com/investplace/quote?Symbol=YELP

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