The stock market was in rally mode on Thursday, with the Dow Jones Industrial Average (DJINDICES:^DJI) up 5% at 12:40 p.m. EDT. Stocks rebounded following the brutal sell-off over the past few weeks driven by the novel coronavirus pandemic and actions taken by governments to slow its spread.
In the United States, the number of cases and deaths from the virus continues to grow rapidly. The U.S. now has nearly 70,000 confirmed cases and over 1,000 confirmed deaths, according to data from Johns Hopkins University. It won’t be long before the U.S. surpasses Italy and China in the number of confirmed cases.
A rising tide lifted most boats on Thursday. Apple (NASDAQ:AAPL) stock rose despite multiple analysts becoming a bit more pessimistic, and shares of Caterpillar (NYSE:CAT) were up even as the company pulled its fiscal 2020 guidance.
Apple target cut, and 5G iPhone could be delayed
Given the global impact of the novel coronavirus pandemic, both on supply chains and on consumer demand, 2020 is unlikely to be a good year for Apple’s iPhone business.
Analysts at Bank of America slashed their price target on Apple stock for just that reason. BofA reduced its target on the stock by $20 to $300, citing lower iPhone demand stemming from the pandemic. BofA also cut its outlook for 2020 iPhone unit sales from 207 million to 175 million. Under a bear-case scenario, BofA sees lockdowns reducing unit sales by 13%.
While BofA is becoming more pessimistic on Apple, the bank continues to rate the stock a buy. Positives include Apple’s rock-solid balance sheet and an eventual sales boost from 5G-enabled iPhones.
Speaking of 5G iPhones, Wedbush analyst Daniel Ives now sees a launch in September or October as very unlikely. Ives pegs the chances of a 5G launch