It’s Apple earnings day, and beaten-up bulls are hoping that means it’s also “Turnaround Tuesday.”
The backdrop isn’t exactly that promising, with the Nasdaq having shed nearly 4% over the past three sessions. Morgan Stanley says “the selling has just begun,” and we’re even hearing from perma-bear John Hussman, who runs an underperforming fund that has seen massive outflows. He warns of a “danger zone” for the stock market.
But Apple AAPL, -0.56% could come to the rescue with its results after the close, suggests our call of the day, which comes from Ken Berman at Gorilla Trades.
“I predict an all-around beat, possibly by as much as $1 billion in sales (over $53 billion), and up to seven cents ($2.26) on per-share earnings,” writes Berman, who is the stock-picking service’s founder and CEO.
He predicts the encouraging results will be “driven by a heavier mix of higher-priced iPhones, momentum in iPads and strength in services.”
The beat will jolt Apple’s stock higher and push the tech giant’s market cap above $1 trillion, he adds.
“Apple will be the first company in history to reach this milestone, but others will quickly follow, notably Amazon, then Alphabet, which I forecast will arrive before Microsoft,” the strategist says.
Others point out the Colossus of Cupertino could’ve been a trillionaire long ago, but instead it spent big on buybacks and dividends.
Read: Apple earnings — Brace for hints about the next iPhone
And see: Earnings Watch — even Apple takes a back seat to Elon Musk’s Tesla right now
Also possibly cheering up bulls, Bespoke Investment Group is noting that, if history is any guide, Nasdaq names look set for a rally:
When the Nasdaq has fallen 1%+ 3 trading days in a row, with the 3rd day being a Monday, the following day has averaged a gain of 0.91%... Turnaround Tuesday?
— Bespoke (@bespokeinvest) July 30, 2018
