Apple Inc. (NASDAQ:AAPL) stock was up 3.61% in late morning trading on January 4. The uptick comes a day after the stock shed 9%. Apple adjusted its forecast down after iPhone sales numbers came in below expectations. Economic headwinds and global trade pressures have put the squeeze on Apple. This represented the worst trading day for the company since 2013.
Apple and other tech stocks managed to gain back some momentum on January 4. A U.S. jobs report revealed that the country added 312,000 jobs in December, and unemployment was at 3.9%. This top line report sparked a very positive run for stocks at the end of the week.
Apple CEO Tim Cook did lay out a plan for turning around Apple’s fortunes going forward. This included pushing Apple trade-in program to reduce the cost of an iPhone to consumers. The smart phone market has grown increasingly competitive in recent years, and consumers are less likely to trade in for newer models as the rates of advancement have slowed. Apple is also tasked with exploring how to more effectively break into market like India with a low-cost option.
It may be tempting to pick up Apple on this dip, but investors should be patient as the US economy looks poised for a sharp slowdown in 2019 and 2020. With the benefits of U.S. tax reform wearing off large tech firms will be under pressure throughout the year. Investors should wait out the tech bloodbath for the time being.
