A day after US President Barack Obama decided to seek congressional authorization for military action against Syria, stock futures increased. It was one move that was expected to delay strikes for at least a few days.
Equities are experiencing immense pressure because of the recent prospect that a Western intrusion against Syria in response to the use of chemical weapons on civilians will lead to even greater deaths. This geopolitical chaos has further contributed to losses in the market. This recent loss has marked the month as the worst month for S&P.
In the same time frame, many events developed in the stock market. One of them was Apple’s rebound on Wall Street. The stocks jumped and took a 15% leap, the lowest since April, but quickly turned around. This signaled a beautiful outlook for the world’s largest technology company – Apple.
At the beginning of 2013 the company’s average target price was about $735. However, as of August 22nd, it hit a low of $540, just the day prior to the earnings. The technology giant pulled off amongst the largest corporate bond offerings in the entire history, selling up to $17 billion in bonds. Bonds of Apple in terms of maturity last for 30 years, which will lead to an increased demand for the company to push its yields down to a decent low.
People are not asking for compensation for the risk oriented bonds of Apple, which portrays nothing but confidence on the part of the company. And this is regardless of the fact that many are pointing out that the company has experienced busts and booms of extreme levels throughout the entire history of the company.
Apple’s rebound on Wall Street and the confidence that it possess will truly bear results with time and we will also come to know whether all these actually make any sense or not. The rise in stocks aided in making technology stocks amongst the leading gainers that in the Standard & Poor’s 500 index. However, the gains were not enough to aggravate the index of broad market to a scale high for the day.
Observers have been saying that stocks are treading water because companies are completing their second quarter report earnings and investors are considering when the Federal Reserve will go about starting to ease down the economic stimulus a