Apple Shares were deep in the bear with a 2.5% draw back in the late afternoon trading hours in the previous session. The combination of the market conditions and company-specific news is making investors hesitate into investing into the tech giant company.
The current state of the company department dipped nearly across the board during mid-day trading after analysts from JP Morgan, JP Morgan released an alarming warning about the recent decorrelation that is happening in the market.
Marko Kolanovic from JP Morgan stated that “Over the past year, correlation od stocks and sectors declined at an unprecedented speed and magnitude”
In the simplest term, Decorrelation means that, stocks are moving sporadically different directions in different times. Markets tend to be most in sync when the conditions are poor, as investors look to dump stocks universally.
The major indexes have been rallying with all-time highs nearly every day as of late, so it’s seems that JPMorgan’s caution is being met with agreement by some who think we may be due for a pullback soon.
Moreover, Apple investors are graving with the major announcement that one of its key suppliers, Foxconn, is setting up a manufacturing plant in the United States. FoxCon is expected to spend about $10 billion over the next three years on the new facilities, which will employ almost 3,000 people and focus on LCD screen production for TV maker.
Finally, Apple announced on Thursday that it was cutting its lineup of iPod models by discounting the iPod Shuffle and iPod Nano. According to a company statement, Apple is also updating its iPod Touch models for the first time since 2015.