Marketbites: Apple Leads Market Rebound
Portfolio Manager Commentary:
Stocks rebounded well to close out the week despite Amazon shares tumbling down. Apple supported the rebound with its best day since 2020 rising 7.6% after posting results that modestly beat expectations. Still, the overall stock market broke down this week after investors dumped tech stocks following disappointing earnings results and outlooks. Amazon stock fell 7% on Friday following its announcement of weaker sales guidance during a critical holiday shopping quarter. Meanwhile, data that came out over the course of the week indicated inflation may be easing, increasing hopefulness that the Fed may not continue its trend of 75 basis point rate hikes.
“Inflation data really wasn’t that bad. The earnings have been not great, but not awful,” said Megan Horneman, chief investment officer at Verdence. “When you have that middle of the road, that helps equity markets.”
Chart of the Day:
Credit-card debt has reached a new milestone by returning to levels last seen before the Covid-19 pandemic. In total, card balances in the U.S. hit $916 billion this September. When the U.S. economy reopened, many credit-card issuers loosened underwriting standards, making it easier for people with lower credit scores to get cards. Now, Americans are spending and borrowing despite the looming threat of a recession.