{"id":101920,"date":"2017-02-09T12:09:23","date_gmt":"2017-02-09T17:09:23","guid":{"rendered":"http:\/\/countingpips.com\/?p=101920"},"modified":"2017-02-09T08:09:53","modified_gmt":"2017-02-09T13:09:53","slug":"the-hidden-story-behind-apple-earnings-announcement","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/02\/the-hidden-story-behind-apple-earnings-announcement\/","title":{"rendered":"The Hidden Story Behind Apple Earnings Announcement"},"content":{"rendered":"
February 9, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> <\/p>\n

\"LouisAll eyes are on Apple (AAPL) after the tech giant\u2019s stellar earnings report last week, and deservedly so.<\/p>\n

Sporting a market cap of $675 billion, Apple is the most valuable company in the world.<\/p>\n

The stock represents 3% of the S&P 500 and 14% of XLK \u2014 the exchange-traded fund that tracks S&P 500 tech stocks.<\/p>\n

In other words, much of the stock market lives and dies by what happens to Apple.<\/p>\n

A return to positive growth in iPhone sales was a huge relief to investors and helped drive the tech-heavy Nasdaq index to a fresh all-time high.<\/p>

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But the biggest story in tech isn\u2019t about Apple or any of its large-cap peers.<\/p>\n

Over the next few years, the real profits in tech stocks are going to come from small-cap firms.<\/p>\n

As senior analyst Jonathan points out below, now could be best time to load up on shares\u2026<\/p>\n

Don\u2019t Be Fooled \u2014 The Greenback Won\u2019t Stay Down for Long<\/h2>\n

\"JonathanThe dollar has been a thorn in side of stock investors for several years now.<\/p>\n

As you may know, a rising dollar pinches the profits of U.S. companies that do business in foreign countries.<\/p>\n

So while the greenback has gained more than 20% over the last three years, U.S. multinationals have felt the pain.<\/p>\n

Economists with the Federal Reserve estimate that the dollar\u2019s steep rise may have reduced U.S. corporate net incomes by as much as 5.6% between September 2014 and March 2015 (the steepest period of the dollar\u2019s three-year run so far).<\/p>\n

President Trump asserted that the dollar is \u201ctoo strong.\u201d But his proposed pro-growth policies will likely only drive the buck higher.<\/p>\n

No surprise here; investment capital will flow into the countries offering the highest return on their cash.<\/p>\n

On these hopes, the buck has risen as much as 5% since Election Day.<\/p>\n

However, in the last few weeks, President Trump has rattled the markets by signing a flurry of executive orders, including a temporary travel ban on visitors from several Muslim nations.<\/p>\n

This will only put a temporary drag on the market, though.<\/p>\n

The effect of Trump\u2019s tax cuts and pro-business legislative reform will be far more impactful when they get rolling.<\/p>\n

And while the ensuing rally on the dollar might be bad news for tech giants, its great news for the tiny firms.<\/p>\n

Here\u2019s how you can trade the action\u2026<\/p>\n

Leave Your Passport at Home to Bag These Profits<\/h2>\n

Tech companies are particularly sensitive to the dollar\u2019s movements because they do a lot of international business.<\/p>\n

For instance, Apple Inc. (AAPL), Alphabet Inc. (GOOGL) and Microsoft (MSFT) generate more than half of their sales overseas.<\/p>\n

On the other hand, Bank of America Merrill Lynch data show that 81% of sales by companies in the small-cap Russell 2000 index come from the United States.<\/p>\n

Investors have already begun rotating their portfolios to shed large-cap tech holdings and load up on domestically focused names.<\/p>\n

In the last three months, the Powershares S&P SmallCap Information Technology ETF (PSCT) has gained 17%, nearly double the gain of the large-cap tech fund, XLK, over the same period.<\/p>\n

And if the dollar keeps climbing, small-cap names have a lot more room to run.<\/p>\n

Bottom line: Tech investors would do well to load up on small caps while the dollar takes a breather. Individual stocks will yield the purest plays, but a focused fund like PSCT gives investors a broad, less volatile way to play the action.<\/p>\n

On the Hunt,<\/p>\n

Jonathan Rodriguez
\nSenior Analyst, Wall Street Daily\u00a0<\/i><\/p>\n

The post The Hidden Story Behind Apple Earnings Announcement<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com All eyes are on Apple (AAPL) after the tech giant\u2019s stellar earnings report last week, and deservedly so. Sporting a market cap of $675 billion, Apple is the most valuable company in the world. The stock represents 3% of the S&P 500 and 14% of XLK \u2014 the exchange-traded fund that tracks S&P […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-101920","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/101920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=101920"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/101920\/revisions"}],"predecessor-version":[{"id":101930,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/101920\/revisions\/101930"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=101920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=101920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=101920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}