The firm goes on to say that the PC industry is having trouble with identify and innovation. Apparently, the sector is in the middle if a transformational identity crisis, whereas those shifting toward consumer preferences are taking share, while those rooted in the past become the source of market share.
As for market reaction today, the Nasdaq 100 is underperforming the S&P 500 a tad. Tech titan AAPL recently made a low of $419. This prior low made about a month ago, will prove to be an important trading pivot for perhaps a short-term bounce.
Last night on CNBC’s Fast Money, the show had on BTIG analyst Walter Piecyk to express the reasoning behind his buy rating. He went on to say that nominal growth is still cheap. Should AAPL do anything with its cash, like buy Twitter, the stock could then trade at 12 to 14 times earnings. This could help monetize all these people looking at their phones.
He goes on to say that, “I think the problem with Apple right now is people are just questioning whether they can ever return to growth, whether they had a peak earnings year last year that they’ll never get back to. If you can return some level of confidence that they can return to growth, the stock will do well quickly.”
Throughout the recovery period European leaders have often looked to the export market for support, but evidence is mounting that recent actions by other central banks have hamstrung European exporters. This morning’s disappointing revelations of merchandise trade numbers from both France and Germany showed evidence that European goods are losing their edge in global markets. German exports fell 1.5% in February, the first decline in three months, while imports fell along the same trajectory they have followed for a similar period of time. The numbers out of France were comparatively worse.
This sign of weakness from the Eurozone’s two largest economies could prove a blessing in disguise, as frustration from the smaller members of the currency push German and French governing forces towards a more open stance on quantitative easing, or other accommodative, growth-oriented monetary policy. Draghi himself has shown an increasing level of interest in pursuing such policies, but has faced resistance from Germany and France, who desired to defend their own interests through implementation of selective austerity measures. There is little evidence that these nations plan to alter their stance on the issue of monetary policy, but mounting empirical evidence and pressure from external forces will likely force a renewed discussion of alternative methods of rebalancing.
NUS, Nu Skin, another multi level marketing firm, had a 7% drop on the news, and implied volatility jumped about 500 bps on the day.
The statement from KPMG goes as follows, “Late last week, we were informed that the partner in charge of KPMG’s audit practice in our Los Angeles business unit was involved in providing non-public client information to a third party, who then used that information in stock trades involving several West Coast companies. The partner was immediately separated from the firm….”
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