Apple Hiring News Hits Sentiment
Shares in US tech giant Apple fell sharply yesterday amidst reports that the company will scale back hiring and spending into 2023, citing concerns over the economy. According to a Bloomberg report which ran yesterday, sources at the company confirmed plans to reduce expenditure in certain teams next year, in light of the project economic downturn facing the US and the ongoing surge in inflation which is eating into costs. A growing number of firms, mainly in the tech sector, have highlighted similar plans as a defensive move in the face of the anticipated recession across year-end
Apple is scheduled to report second quarter earnings next week and the market is looking for both EPS and revenues to have fallen back from Q1. Apple will no doubt have bene impacted by the return of lockdowns in China over recent months and, with fears of further lockdowns to come, Apple is suffering disruption in one of its key markets.
Technical Views
AAPL
Following the latest rebound off the 133.11 level, Apple shares have since broken out above the bearish trend line from YTD highs and have been grinding higher within a corrective bull channel. Price has now stalled into the 151.36 resistance and, while this holds, the risk is that downside resumes, putting the focus back on 133.11. If Apple shares can break current highs, however, focus will shift to 167.45 next.
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Written by James Harte
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.
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Source: Tickmill