Apple shares were trading above $236 Friday afternoon, building on the positive momentum seen for much of the year. The stock’s previous peak was $233.47, hit on Oct. 3, 2018.
The stock shed about 6% in 2018, dragged down by poor reception to the iPhone 10 line-up launched in the year, the broader market downturn and simmering U.S.-China trade tensions.
Bad Start, But Good Going
Although it’s been a good year for Cupertino, it didn’t start well: Apple lowered its December quarter revenue guidance in early January, reducing its outlook for the first time in 20 years.
The stock lost about 10% in a single session Jan. 3 before taking off on a strong rally that was interrupted by a short downtrend that began in early May and lasted about a month through June 3.
Source: Y Charts
Headwinds Become Tailwinds
Trade Tensions De-Escalate
After remaining a thorn in the flesh for the market and the economy for about two years, signals of a likely resolution to the long-standing U.S.-China trade tensions are emerging.
High-level officials from both sides have are in talks, with President Donald Trump expressing hopes of a positive outcome.
Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days. I will be meeting with the Vice Premier today. All would like to see something significant happen!
— Donald J. Trump (@realDonaldTrump) October 11, 2019
The imposition of tariffs on Chinese imports and a potential retaliation by China would hurt Apple, as it counts China not