In early afternoon, Apple was trading near the $580 mark, down 3.32 percent for the day, and 10 percent below its all time highs of $644, though there were no major corporate developments to count for such decline.
At the same time, low priced high tech stocks like Microsoft (NASDAQ:MSFT) and Intel (NASDAQ:INTC) posted modest gains; the broader market was also trading slightly higher with SPDR S&P 500 (NYSE:SPY) up 0.15 percent.
The broader correction in the high priced stocks that have been big winners in the recent rally suggests that Apple’s decline is most likely part of profit taking rather than something most serious; and the correction may soon be over.
Some stocks that had been market winners were dumped, along with Apple, such as high flying Priceline PCLNloading.
As we did write in a previous piece, active investors should learn how to distinguish between the news message and the noise.
The news that carry the message are those that tell investors something about the company’s economic fundamentals, its PE, its earnings and revenue growth, the success of new product releases, and its product pipeline.
Above all, it is the news about the Apple’s commitment to its innovative trait—something the company’s Chief Executive Officer Tim Cook has repeatedly re affirmed.
The news that are just noise are those that make wish washy forecasts about Apple’s future price; and those that compare its market valuation with the valuation of conglomerates, or even the GDP of small countries.
Mark Jones is a business journalist based in Melbourne, Australia. Mark has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Mark spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.