The Zacks Analyst Blog Highlights: Apple, DowDuPont, Exxon Mobil, Johnson & Johnson And Verizon Communications
Zacks Investment Research | Dec 09, 2018 10:12PM ET
For Immediate Release
Chicago, IL – December 10, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. (NASDAQ:AAPL) , DowDuPont Inc. (NYSE:DWDP) , Exxon Mobil Corporation (NYSE:XOM) , Johnson & Johnson (NYSE:JNJ) and Verizon Communications Inc. (NYSE:VZ) .
Here are highlights from Friday’s Analyst Blog:
Dow 30 Stock Roundup: AAPL, XOM & More
The Dow traversed a rough holiday-shortened week, marked by the return of trade war fears. Trade tensions dissipated on Monday following the temporary ceasefire between the United States and China. However, trade fears made a comeback on the next day following U.S. President Donald Trump’s “Tariff Man” tweets. A yield curve inversion also weighed on investors, sparking fears of an economic slowdown.
Last Week’s Performance
The index gained 1.1% on Monday following a pause in trade-related hostilities between the United States and China. Following Trump and Jinping’s dinner meet, the countries agreed on a 90-day truce to address bilateral trade-related issues.
The index plunged 3.1% on Tuesday, reversing its two-day winning streak. Yields on 2-Year US Treasury Note and 3-Year US Treasury Note surpassed the yield on 5-Year US Treasury Note. For many industry experts, this is a clear signal of an impending economic slowdown.
Moreover, investors become skeptical regarding a permanent solution to the trade conflicts. Such fears heightened after Trump reminded China that tariffs are still a key weapon for him.
Meanwhile, Wall Street was closed on Wednesday to mourn former President George H.W. Bush. The index fell 0.3% on Thursday, shedding 785 points at its session low. News that Huawei’s chief financial officer had been arrested for violating Iran sanctions triggered renewed concerns about U.S.-China trade ties.
However, markets were able to recoup initial losses somewhat with an afternoon rebound helping the Dow enter the positive zone for the year. The recovery was triggered by a report from the Wall Street Journal per which the Fed may take a break from raising rates after announcing a hike later this month.
Components Moving the Index
Apple Inc.is expected to wait until 2020 to unveil an iPhone with 5G connectivity, per Bloomberg.
The Cupertino-based company, which initially planned to launch a 5G-supported iPhone by 2019, is likely to delay the launch due to unavailability of Intel’s 5G-enabled chips. Notably, after a legal dispute over royalty payments with Qualcomm (NASDAQ:QCOM), Zacks Rank #3 (Hold) Apple chose Intel’s 5G chips for its iPhones.
The delay may not bode well for Apple as other major phone providers like Samsung (KS:005930), Oppo and Huawei Technologies are gearing up to launch their 5G versions in 2019. Moreover, in terms of shipment (second-quarter 2018), Apple has lost its position to Huawei, which has become the second-largest smartphone seller after Samsung, per Zacks Investment Research
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