Why Apple Inc. (AAPL) and Bank of America Corp (BAC) Are Defying the Downbeat Market

Page 1 of 2

We all knew it couldn’t last forever. Following 10 consecutive days in which the market closed higher — the longest streak since the 1990s — the Dow Jones Industrial Average appears positioned to finish lower for the first time this month. With roughly an hour left in the trading session, the blue-chip index is down 51 points, or 0.35%.

Apple Inc AAPLThere was a slew of economic releases on the macroeconomic front today. First, consumer confidence came in worse than expected. The closely watched Thompson Reuters/University of Michigan index of consumer sentiment fell to 71.8, down from 77.6 in February. Economists surveyed by Bloomberg had expected a reading of 78. According to a market strategist quoted by The Wall Street Journal: “The drop in March is certainly out of step with some of the other things that we’ve been seeing. But [Thursday's] jobless claims number was still low and everything else is doing OK, so I’m not freaking out just yet.”

On a slightly more upbeat note, a report by the New York Federal Reserve estimated that growth in the eponymous region’s manufacturing sector stayed positive for a second month in a row. Its Empire State manufacturing index came in at 9.2 for the month of March. This was slightly worse than the preceding month, but, as an economist told MarketWatch.com, the reading suggests that the level of manufacturing activity “does seem to be getting better” — though he went on to note that “it still hasn’t got to a point where we would call it strong, firm, or even normal.”

Finally, the Bureau of Labor Statistics released its estimate of inflation for the month of February. The data showed that consumer prices rose by 0.7% last month, equating to the fastest increase since 2009. The primary impetus was energy prices, which climbed by 9% over a one-month time period. On a year-over-year basis, meanwhile, overall inflation came in at 2%. For those worried that this news will encourage the Federal Reserve to ease off the monetary gas pedal, any such concerns are premature, as the central bank has promised to keep interest rates low until annualized inflation exceeds 2.5% or the unemployment rate falls below 6.5%.

In terms of individual stocks, the worst-performing component on the Dow today is far and away JPMorgan Chase & Co. (NYSE:JPM), the nation’s largest bank by assets. After the market closed yesterday, the Federal Reserve released the results of the 2013 Comprehensive Capital Analysis and Review, or CCAR, the purpose of which is to determine which of the nation’s biggest banks will be allowed to increase the amount of capital they can return to shareholders this year.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!