Apple Likely to Unveil New iPhone Model Today
Pre-market futures are dialing back a bit from a mixed trading day on Monday. September has performed strongly thus far, up 1.5-2.0% on the major indexes. Even more on positive sentiment, the indexes only need to rise another 2% or so higher to reach those all-time high closes we saw in July, after a rough time of it in August.
With plans for U.S. Treasury Secretary Steven Mnuchin to meet Chinese government representatives next month in hopes the nearly year-long trade war can come to an end, as well as expectations of a new quarter-point rate cut in interest rates at the next Fed meeting a week from Thursday, hopefulness abounds. Consider also more stimulus expected from the European Central Bank (ECB) this Thursday will bring even more tailwinds to the global economy.
Economic reports this week are on the mild side, especially considering the big jobs reports we saw last week, and a heavier number of reports expected beginning next Monday. For the remainder of the week, we look forward to a new Producer Price Index (PPI) report tomorrow and the corresponding Consumer Price Index (CPI) Thursday, which will also bring us fresh jobless claims data. Retail Sales and Consumer Sentiment reads will come out on Friday.
Apple’s Annual Event
Apple AAPL conducts its annual event today, in which new iPhone models (the 11 series) are expected to be unveiled. It’s been almost 8 years since the passing of Apple founder Steve Jobs, and even longer than that since the annual Apple event generated extensive excitement, both before and after the unveiling of new products.
That said, analysts will be paying attention to a few key things: whether reaction to the upgrades in the iPhone 11 registers notably, whether Apple Watch sales have increased meaningfully, and whether there is any news on the timeline of coming Apple credit cards. CEO Tim Cook has proven himself a steady executive but not the product and marketing genius Jobs was.
Even still, Apple shares have risen nearly 36% year to date, with its Services segment gaining in share of overall revenues at the company. Will we continue to see these numbers keep on a similar trajectory, both compared to other revenue streams and services from rival firms?
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