Fed chair Powell addressed the elephant in the room on Friday, tapering will take place and it won’t be at the same time as when they decide to raise interest rates. In the lead-up in the last couple of months FOMC meetings there’s been an emphasis on “substantial further progress” it is mainly focused on unemployment and economic growth.
Last month the unemployment rate came down substantially to 5.4%, which is progress, there is still nearly a million job openings that haven’t been filled according to the JOLTS report, which means that there is a lot of progress to still be made to bring unemployment down even further.
There would be a lot of emphasis on next months FOMC as an announcement may very well be made and could be implemented more aggressively given how the unemployment figures are set to be released this week.
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- Alibaba (BABA) declined by 3.49% as China is expected to ban Chinese companies from US IPO’s
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Apples earnings and revenue remain positive as earnings and revenue surpassed expectations in last months earnings reports. Apple was up 0.72% on Friday’s close.
In the latter part of last week, Apple announced that it will make changes to its App Store policies, that could reduce sales from a services point of view. They had a 30% commission rate for app developers that were scrutinised by Epic Games resulting in a lawsuit, which resulted in $100 million to be paid to app developers in a class-action settlement.
It wasn’t all bad news, the anticipation for the iPhone 13 brought some positivity to the tech giant as Evercore ISI estimates that the company could see $20 billion in revenue come from ad sales within a few years.
Reports were released that Apple will use satellite connectivity so users can make phone calls in rural areas where there is no cellular reception. The new hardware is set to make use of Qualcomm’s X60 chip, putting even more focus on Tuesday’s event.
On Tuesday Apple is set to present at The Big 5G event, particular focus would be placed on the 6G session where Apple is set to make statements.
Technically the chart has been consolidating between $143 and $151, a clear break should signify that there’s a continuation of the trend. It’s been struggling to get over the 200-day moving average, but a break should be on the cards with the much anticipated iPhone 13 on the horizon.