Just as we discussed the long waiting time for the Apple iPhone yesterday, we now receive possible news that Apple is looking to cut its iPhone 13 production by up to 10 million units. The shortage of components had constrained its ability to meet demand on time.
The news also affected Apple’s suppliers, such as Broadcom and Texas Instruments were impacted. However, Pika World continues to favour the value-play company despite production issues, given an expectation of continued high growth in the service segment of the business.
🏀Nike: To buy Now?🏀
According to Goldman Sachs, the stocks appear to be a good buy. Since reporting a poor earnings result on 23 September, the stocks have fallen. However, analysts believe that most of the sourcing problems are not permanent and that the company is still likely to fare well compared to its rival, Addidas.
Given that Nike does not lag behind the returns of the S&P 500 often, there has been a keen interest that it might outperform in subsequent years. Pika World has not initiated any positions on the counter.
⏰S&P 500: A test to Meet💎
As the new earnings season arrives, the equity market is likely to wobble if profit estimates are persistently lowered. For example, between 3 September and 8 October, we saw a fall of 0.8% in third-quarter profit estimates for the S&P 500.
The downward revision may become a reality as companies suffer from higher labour costs and shortages to meet their sales forecasts. In addition, higher commodity prices do not help the weakening earnings outlook too.
Pika World continues to see any fall as a good accumulation point as supply chain issues while enduring, will hopefully recover with time.
📮What’s on the Menu Today?
At 8.30 pm, we will receive the Initial Jobless Claims, which is expected to moderately fall to 319K from 326K in the prior period.
The PPI (Mom) for Sept will also arrive. We expect a slight fall to 0.6% from 0.7%. Recall that Pika World sees this as an essential indicator for possible CPI outlook, given producers are likely to pass on some costs to consumers to protect their profit margin better.
Various FOMC members are speaking from 10 pm to 1 pm.
Crude Oil Inventories is expected to be at 0.14M, a fall from 2.346M at 11 pm.
It is 14 October, Thursday, 7.35 am in Singapore and 7.35 pm in New York. Pika World wishes all an enchanting and blissful day.
More Stories
Markets in risk-on mode with year end rally on track.
Consumer Discretionary Stocks Lead Losses, Hinting at Recessionary Concerns
All is well.