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Stocks extend record run, Apple jumps on China Mobile deal

  • Stocks pushed to new highs, with the Dow racking up its 48th record close this year, propelled by strong U.S. data and a rally in shares of Apple; Nasdaq rose 44 points, nearly 1.1%, outpacing other indexes.
  • Personal spending rose 0.5% in November, which bodes well for holiday sales, although personal income rose just 0.2%, falling short of expectations.
  • Apple jumped 3.8% on its distribution deal with China Mobile, helping lift the tech sector; Facebook surged 4.8% on its first day of trading as part of the S&P 500, and Google, Oracle and Intel all rose more than 1%.
  • Home builders and mortgage insurers powered higher on the delay of an expected mortgage fee hike.
  • Treasury prices pulled back as traders shed holdings ahead of the Fed's planned reduction in its bond buying; the 10-year yield drifted up 4 bps at 2.929%, the highest yield since early September.
Comments (1)
  • sl100
    , contributor
    Comments (110) | Send Message
     
    re posting what I said else where :
    So apple went up by 20Billion in 1 day because of the deal. While there been massive decline in iphone sales in US ( is the biggest) and EU region.(this barely is going to offset the decline in US and EU region sales.
    With a mkt cap of 530Billion and rev of 170B and PE of 14. Apple future growth is very shaky due to the saturation of its products and current valuations. See below even if apple stays at these levels what the company sales should be. That's a tall order.
    Long term I see no value in holding apple.

     

    2014 sales : 1.14*170B = 194B (expected)
    2015 sales : 1.14 * 194 = 220B (expected)
    2016 sales : 1.14 * 221 = 252B (expected)
    2017 Sales : 1.14 * 252 = 287B
    23 Dec 2013, 06:02 PM Reply Like
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