Apple Inc. (AAPL) Up 9% Yesterday Drives Nasdaq's Gain of 2.3%VW Staff
After all the navel gazing and gloom preceding the release of Apple Inc. (NASDAQ:AAPL)’s first quarter 2012 earnings, it is now clear that Apple are enjoying the last laugh. Apple surprised even the most optimistic of analysts with an incredible $11.6 billion in profits for the quarter, more than double what the figures were this time last year.
Apple Inc. (NASDAQ:AAPL) thanked surging sales of iPads and an 88% increase in iPhone sales due to the newly released 4S model. Apple’s rivals have been left floundering in the water.
The announcement precipitated a rise of nearly 9% in Apple’s stock value, giving the NASDAQ market a healthy 2.3% boost. When coupled with positive news from Boeing, the results gave an 89 point raise to the Dow Jones Industrial Average a 1.4 % boost to the S&P 500.
Good news for investors and spread betters also filtered down to the Federal Reserve, which upgraded its growth forecasts for the coming quarter.
Bulls see cloud behind every silver lining
However, even this rosy atmosphere has not proven enough for some of the more bullish analysts. Far from the joys of spring, Inna Mufteeva of investment advisors Natixis said that despite the Federal Reserve’s predictions of up to 2.9% growth, the financial outlook remained cautious.
Apple stock is now light years ahead of any of its rivals and virtually represents an index of its own. As such it will be seen as a “canary in the cage” for the technological market as a whole. This is uncomfortable news considering the pessimistic opinions being voiced about Apple in the last week, usually linked to uncertainty within the smart phone market.
In the past quarter, other economic weather vanes, such as Caterpillar, saw a surprise 4.6% decrease in value despite pre-release predictions of a healthy rise in revenue. This; combined with a 2% fall in the bond market and a mixed bag of results from the Oil and gas industry means that the champagne corks aren’t popping in Wall St quite yet, despite the positive news.