While commodities have been struggling for some time, the big news of the week was that Apple has declined 15% from its highs. When we consider that Apple is the market capitalization leader, that’s a big deal. Perpetual market bulls may need to rethink their idea that as goes Apple, so goes the market. It seems to me, that the hardware sector of technology in particular is under pressure. IBM is also sliding, while Google, Facebook, Amazon, and Netflix are still basking in the late autumn sunshine of this very tired bull market. While Apple is certainly important, we also need to keep an eye on financial stocks which have levelled off but not yet fallen from a level near their 2007 highs.
Monday, the Greek stock markets opened to confirm the financial carnage in process in that country. Stocks fell 0.4% in Asia and the U.S. on low moderate volume but changed little in Europe. This decline was enough to bring the S&P 500 Index below the 2100 level again. Precious metals miners shed 3% and oil slid 4% to close below $46 per barrel. The mighty Apple continued its slide and IBM closed under $160. The 10-Year U.S Treasury Bond yield moved 2.5% lower to end the day at 2.15%.
Tuesday, while stocks in Asia were up 0.3%, they were down slightly in Europe and the U.S. on low moderate volume. The 10-Year U.S Treasury Bond yield moved 3% higher to close at 2.21% while AAPL gave up another 3%. Wednesday, stocks fell in Asia 0.3%, rose in Europe 1.3%, and gained slightly in the U.S. on low moderate volume. The 10-Year U.S Treasury Bond yield moved 3% higher to close at 2.27%.
Thursday, stock declined in Asia 0.3%, in Europe 0.8%, and in the U.S. 0.5% on low moderate volume. Precious metals advanced 1% and their miners rose about twice that amount. The VXO shot up 14% to close at 14.46. Friday, stocks in Asia moved little, while in Europe and the U.S. they fell 0.9% and 0.3% respectively on low moderate volume. The 10-Year U.S Treasury Bond yield moved 3% lower to close at 2.18%.