In today’s top stories, we look at the unrest at Apple’s biggest iPhone factory in China, which companies benefited from Black Friday sales and the impact of stagflation on stocks this period of the year. Bank of America analysts share their top 10 deals for 2023, and Richard Bernstein Advisors looks outside the US for alpha.
Apple’s troubles in China
Discontent over harsh lockdown measures turned into violent protest against Apple [AAPL] Foxconn supplier‘s [2354.TW] Zhengzhou factory. Zhengzhou is the world‘s biggest iPhone factory, and the unrest is costing Apple about $1 billion a week in lost iPhone sales ahead of the crucial Black Friday weekend. Forecasts now suggest that the iPhone Pro unit production shortfall could now total 6 million. Apple‘Shares of S fell 2.0% on Friday.
Bank of America’s Top 10 Deals of 2023
30-year US Treasuries top Bank of America analysts‘ list of top 10 jobs for 2023. Michael Hartnett‘the team also predicts a steeper curve “as the recession begins and markets anticipate the Fed moving from hikes to cuts” and say traders should act accordingly. The team is short on tech stocks and the USD, and long on China, the European banks, gold and global industrialists.
Stagflation weighs on expected stock market rally
Investors are waiting to see if the traditional year-end stock rally will outweigh negative macro factors this year, with much of it on the U.S. Federal Reserve‘s December tariff decision. With the Dow Jones poised to exit its bear market, having risen nearly 20% since late September, fears of stagflation are weighing heavily on investor sentiment. A rise of 0.5% is expected in December, which would be a lower rise than that seen earlier this year and would encourage investors.
Black Friday shoppers flock to Walmart
Captify data suggests that Walmart has overtaken Amazon as the top destination for Black Friday discount shopping this year. Searches for Walmart products on Black Friday jumped 386% year over year. Adobe data suggests consumers spent a record $9.12 billion online this year, a 2.33% year-over-year increase. Buy now, pay later Businesses also saw an increase in activity, with these types of payments up 78% from the previous week and 81% year-over-year. Amazon‘The stock price fell 0.78% in total last week.
Look beyond the United States
Investment management firm Richard Bernstein Advisors (RBA) highlighted the strength of the investment opportunities available outside the United States. An RBA research note highlighted the UK as an attractive avenue for investors, the UK‘s stock market outperforming the S&P 500 and Nasdaq Composite despite recent political turmoil. Other countries with little exposure to technology, consumer discretionary and communication are also favored.
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not expressing opinions) is provided for informational purposes only and does not take into account your personal circumstances or objectives. Nothing in this document is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically restricted from processing prior to providing such material, we do not seek to take advantage of the material prior to its dissemination.
CMC Markets does not endorse or offer an opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets will not be liable for any loss you may incur, directly or indirectly, as a result of any investment based on the information contained herein.
*Tax treatment depends on individual circumstances and may change or differ in a jurisdiction other than the UK.
Keep reading for FREE
#Apple #million #iPhone #Pros