Shares of Apple (AAPL) caught a cautious eye from investors today as news of demand for the newest iPhone 16 is dripping into the headlines.
Analysts from JPMorgan and Bank of America are speculating that the newest phone sales may be underwhelming as consumers are still cautious about their discretionary following more than a year of inflationary pressure.
Early numbers from China are also suggesting that the Chinese consumer is choosing less expensive devices as orders for the first days of iPhone sales are light.
Shares of Apple close 2.8% lower and below their lower Bollinger Band.
The latter of those – the breaking of the lower Bollinger Band – suggests that the stock may be in for a rough couple of weeks as a “Volatility Storm” directs prices towards the $200 level.
Apple was one of the Nasdaq 100 stocks that saw an increase, not decrease, in trading volume from today’s headlines.
Long-term investors should brace for additional selling that may amount to a 10% decline to Apple stock’s next support level, it’s 200-day moving average. That trendline is positioned at $195, just slightly lower than the stock’s July lows.
The long-term outlook for Apple remains bullish with a price target of $250.
Shares of Intel (INTC) bucked Monday’s selling pressure as the stock responded to a cash infusion from the U.S. Government.
The Biden Administration awarded Intel Corp up to $3 billion from the CHIPS and Science Act on Monday.
The money is part of the government’s plan to develop a "Secure Enclave" for microelectronics critical component to a wide range of weapon systems and other national security products.
The Department of Commerce is also in current negotiations to award Intel with additional funds for commercial fabrication facilities as Intel is one of the foundry companies seeking to strengthen domestic design and fabrication of semiconductor chips.
Intel stock has been in a bearish long-term trend since the company’s stock broke below its 20-month moving average in April, despite the announcement of the Biden Administration’s intel to award Intel with additional funds from the CHIPs Act.
Shares have been consolidating around the $20 price since losing more than a third of their value following the company’s poor earnings report on August 1.
Today’s rally may help to fortify the once-leader in the semiconductor industry, however shares should still be considered bearish given the intermediate-term and long-term trends in the stock.
Intel shares remain in a bearish long-term trend, but a short-term trader’s view of the stock targets $25 as a potential 4-6 week target.
Analysts at Evercore ISI raised their target price on Carvana (CVNA) to $157 this morning sparking a fresh round of bullish buying. That buying amounted to gains of more than 7% for the say.
The stock – identified as a “tactical Trade” by Evercore analysts – is trading 188% higher in 2024 after losing more than 95% of its value from 2021 to 2022.
The monumental losses came as a combination of inflation-driven spending cuts and high interest rates slashed Carvana’s sales revenue.
In 2023 the company tapped cash to secure debt and lower their operating costs, helping the stock form a long-term bottom below $5 per share.
Today, the stock is completing a move towards new 52-week highs above $160 as interest rates are set to move lower and demand for used automobiles remains more robust than new cars.
Carvana’s 50-day moving average currently sits at $140 to provide support for the stock. The stock’s 200-day moving average is also in a bull market trend.
Carvana had been a favorite target for short sellers, but that is changing as the current short interest ratio for the stock has declined to 3.3 times average daily volume.
Watch for a break of $160 to drive shares towards a target of $200 during 2025.
