The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Apple Stock Watch - Weak Consumer Confidence Drags Techs, AAPL, & (Maybe) Interest Rates Lower

Apple Stock Watch - Weak Consumer Confidence Drags Techs, AAPL, & (Maybe) Interest Rates Lower

by , 5:45 PM EST, October 29th, 2002

A weak Consumer Confidence rating for October helped drag the tech markets south in a Sherman-like sweep through Georgia. A trail of red tech stocks rotting in the wake was all that remained, but the smoke drifting from the wreckage was hope that the Fed would soon cut interest rates yet again. The CCI fell to 79.4, a new 9-year low, and a sharp decline from September's 93.7 measure. Declining CCI is deemed a negative trend because it generally reflects less willingness on the part of consumers to spend money.

As a result, the Federal Reserve is expected to drop rates yet again, to record lows, with a full 50 basis points (a half percentage point) drop. From a Reuters report:

"I reckon Fed easing next Wednesday is a done deal and 50 basis points is more likely than 25," said Rory Robertson, US economist for Australian house Macquarie Equities (USA), who has been consistent in tipping a cut before year-end. "Today's dramatic drop in the high-profile confidence measure leaves little scope for Fed hawks to keep counseling patience on policy," he said.

When is the last time you heard the phrase "I reckon" in a mainstream financial piece?

Cisco helped with the bad attitude among traders after the company's stock was hit with downgrades and lowered estimates before trading began. That helped set the tone, especially with networking and other tech stocks. The DOW, on the other hand, managed to end the day just on the plus-side, after a good earnings report from Proctor & Gamble, and a rally in defense-oriented stocks, helped overcame any overriding negative trends.

By the end of the day, the Dow Jones Industrial Average ended at 8,368.94, up 0.90 (+0.01%). The S&P 500 Index finished at 882.15, down 8.08 (-0.91%). The NASDAQ Composite Index fell to 1,300.54, down 15.29 -(-1.16%). On Monday Apple dropped to 15.44, a loss of 0.17 (-1.09%).

Apple Computer

Apple was caught up in the tech downturn, with no specific news helping to bring the company's stock lower. Yesterday, we reported that Rob Enderle of the Giga Information Group has once again predicted Apple's doom. Mr. Enderle said that the company's platform was heading towards obsolescence, and that the company would be forced to move to Intel. See our full report for more information and commentary.

While Mr. Enderle was rehashing his groundless arguments concerning Apple, Gartner's Dataquest released a report showing that Apple's share of the server market had almost tripled. The company also moved into the #5 server vendor spot, though far behind #4 server vendor, Sun Microsystems. See our full report for more information and commentary on this.


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Recent Headlines - Updated September 2nd

Tue,5:33 PM
MGG 517: Random Access Gab
5:12 PM
Last Chance for 8 Award-Winning Mac Apps for $39.99
5:00 PM
Apple’s Deal with Major Credit Cards Companies Has Hidden Value
3:34 PM
Samsung Taps David Hasselhoff, Knight Rider, and Kit for Smart Home Ad
3:19 PM
Apple: Celebrity Photo Theft Due to Compromised Passwords, Not iCloud Security
1:03 PM
TMO Daily Observations: 2014-09-02
11:22 AM
Analyst: New iPhones Coming, Maybe an iWatch, too
10:13 AM
Report Claims iWatch Still in Testing, No Sept 9 Unveiling
8:50 AM
Apple Lands Digital Wallet Deal with Amex, Visa, MasterCard
Mon,5:52 PM
Apple Fixes iCloud Security Gap, ‘Actively Investigates’ Celeb Photo Theft
8:00 AM
Happy Labor Day
Sun,5:23 PM
How to Use a FLIR Camera to Steal a PIN Code, and How to Stop It
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!