Apple Briefly Tops $3 Trillion Market Cap
Topic of the day
Apple Inc. briefly touched $3 trillion in market value, making it the first U.S. company to do so. Shares of the iPhone maker crossed that level intraday when they topped $182.856 Monday afternoon, reaching $182.88, according to FactSet. Apple's stock closed the first trading day of the year up $4.44, or 2.5%, at $182.01. The move marked the latest milestone in a pandemic-era surge that carried shares of Apple and other large technology companies to unprecedented highs. Its share price has more than tripled since the pandemic lows of March 2020, adding around $2 trillion in market capitalization. Apple is a staple in retail and institutional investors' portfolios. The milestone marked a 41% rise for Apple's shares since the beginning of 2021, among the biggest gains in the Dow Jones Industrial Average. Apple was one the five biggest contributors to the S&P 500's 27% rally in 2021 along with Microsoft Corp., Nvidia Corp., Alphabet Inc. and Tesla Inc., which together accounted for 31% of the index's performance in 2021, according to S&P Dow Jones Indices data.
The Swiss stock market lagged its European neighbors at the start of the new year. While Germany, France and Italy rose by 0.8 to 1.4 per cent, the SMI only managed a gain of 0.5 per cent to 12,939 points. Among the 20 SMI stocks, there were 16 price gainers and 4 price losers. 27.14 (Thursday: 19.48) million shares were traded. The SMI was led by shares from the banking and insurance sectors. They were also bought against the backdrop of further rising market interest rates, which suggest more profitable lending business and more lucrative investment opportunities. The heavyweights from the pharmaceutical and healthcare sector, Roche (-0.1%) and Novartis (+0.1%), which are considered to be less sensitive to the economy, had a particularly braking effect. Alcon fell by 1.3 per cent. Price-moving corporate news was scarce. Zurich Insurance sold its Italian life and pension insurance business through its subsidiary to the Portuguese insurer Gamalife. The share price rose by 1.5 per cent.
European equity indices ended the first session of 2022 higher, starting the year on new record highs, as concerns about the impact of the Omicron variant of the coronavirus on the global economy continue to fade. The Stoxx Europe 600 index rose 0.5% to a new all-time high of 490 points. In Paris, the CAC 40 gained 0.9% to a new record high of 7,217.2 points. The SBF 120 also gained 0.9%, also setting a new high of 5,595.9 points. In Frankfurt, the DAX 40 gained 0.9%. The London Stock Exchange is closed on Monday. The European Union has proposed treating nuclear energy and natural-gas investments as similar to renewables over coming years in pursuit of a carbon-neutral economy, but the approach faces criticism from some of the bloc’s governments. The draft recommendation, which needs approval from EU governments and the European Parliament, underlines the political controversy already stirred up by environmental policies in Europe, despite broad public support for action to prevent climate change. The proposal from the European Commission, the EU’s executive arm, spells out changes to what counts as investment in environmentally sustainable energy. Known as the “green taxonomy,” it is being closely watched by investors and industries including power generation, transportation and manufacturing. Auto makers are trying to control more of the supply chain for electric vehicles, forging new partnerships with raw materials producers and investing in facilities that make chemicals for batteries. Volkswagen AG and other major car companies have already been spending heavily on joint-venture factories to ensure their own supplies of electric-vehicle batteries. Now, they are also looking to expand further as they seek to lower costs, secure sought-after components and exert more control over battery quality and performance.
U.S. stocks rose in the first session of 2022 and Apple briefly touched a $3 trillion market capitalization, though investors were also monitoring cases of the Omicron variant of Covid-19. The S&P 500 gained 0.6%, closing at a record after a year where it rose 27% and notched 70 record highs along the way. The tech-focused Nasdaq Composite Index rose 1.2%, while the Dow Jones Industrial Average rose 0.7% -- also ending at a new high. Tesla Inc. shares jumped Monday after the electric-vehicle maker said deliveries surged in 2021. The stock rose $143, or 14%, to $1,199.78. The S&P 500, meanwhile, added 0.6%. Tesla ended the day 2.4% below its record close of $1,229.91, set Nov. 4. On Nov. 6, Chief Executive Elon Musk said he would sell 10% of his Tesla stock if participants in a Twitter poll supported the move. A majority of voters backed the sale, and Tesla shares dropped 16% over the next two trading sessions. By late December, Mr. Musk had sold shares worth more than $16 billion, while also exercising millions of Tesla stock options. Apple Inc. briefly touched $3 trillion in market value, making it the first U.S. company to do so. Shares of the iPhone maker crossed that level intraday when they topped $182.856 Monday afternoon, reaching $182.88, according to FactSet. Apple’s stock closed the first trading day of the year up $4.44, or 2.5%, at $182.01. The move marked the latest milestone in a pandemic-era surge that carried shares of Apple and other large technology companies to unprecedented highs. Its share price has more than tripled since the pandemic lows of March 2020, adding around $2 trillion in market capitalization.
Strong US stock market support helped most Asian stock markets to make gains on Tuesday. Now the stock markets in Australia, China and Japan are also open again after the extended weekend for the New Year holidays. The Shanghai Composite falls by 0.2 per cent. The news that a partial shutdown has been ordered in the city of Zhengzhou as of Tuesday after several cases of covid occurred there is likely to have a negative effect.
U.S. government bond yields were unchanged in Asia after they rose on Monday to their highest levels since November, with returning traders betting the Omicron Covid-19 variant won't shift central bank policy in the months ahead.
Citi raises Lufthansa to Buy – Target EUR 7.50
Citi raises Air France to Neutral – Target 4.20 EUR
Citi raises Fraport to Buy – Target EUR 70.50
Produced by MBI Martin Brückner Infosource GmbH & Co. KG on behalf of Swissquote. All news is acquired with journalistic accuracy. No liability is assumed for delays or errors.