Shares in Apple Inc. jumped more than 12.5% during the Monday trading session, pushed higher by analyst comments about strong notebook sales. The strong jump also came in the midst of a broader market rally sparked by news of a federal bailout of Citigroup, Inc.
JP Morgan analyst Mark Moskowitz raised his estimates for Apple for the December quarter to US$1.38 per share from $1.29 per share after lowering his estimates for both iPod and iPhone sales, and raising his estimates for Appleis notebook product line, including the companyis new MacBook.
Oppenheimer & Co. analyst Yair Reiner released similar comments, lowering iPhone estimates and raising notebook estimates. He feels strongly enough about the appeal of the MacBook that he predicted it, "will continue to peel away users from the Windows mold."
Mr. Reimer raised his December EPS estimates to $1.39 per share, up from $1.36 per share.
The markets were pumped and primed for a good day when the Federal government announced before the opening bell a bailout deal for Citigroup to the tune of a $20 billion investment in the company, with another $306 billion in loan guarantees.
The news sent the markets into some rarely seen black territory, with the DOW ending the day at 8,414.24, a gain of 367.82 (+4.57%), and the NASDAQ closing at 1,459.16, a gain of 74.81 (+5.40%).
AAPL closed at $92.95 per share, up $10.37 (+12.56%), in moderately strong volume of 50.9 million shares trading hands.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.