NASDAQ, APPLE INC (AAPL) NEWS AND ANALYSIS

  • Apple expected to post revenue and earnings drop on reduced sales but cost cutting likely to ease concerns
  • Nasdaq reverts to consolidation as longer-term uptrend continues. Increased volatility this week underscores the threat of possible false breakouts
  • Risk events of this week: FOMC, services PMI, NFP

APPLE EXPECTED TO POST REVENUE AND EARNINGS DROP ON REDUCED SALES

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Nasdaq Price Update: Apple Earnings, FOMC, NFP to Provide Volatility

Nasdaq Price Update: Apple Earnings, FOMC, NFP to Provide Volatility

May 2, 2023 6:51 PM +04:00Richard Snow, AnalystWhat’s on this page

  • Apple expected to post revenue and earnings drop on reduced sales but cost cutting likely to ease concerns
  • Nasdaq reverts to consolidation as longer-term uptrend continues. Increased volatility this week underscores the threat of possible false breakouts
  • Risk events of this week: FOMC, services PMI, NFP
  • The analysis in this article makes use of chart patterns and key support and resistance levels. For more information visit our comprehensive education library

RECOMMENDED BY RICHARD SNOWSee what out analysts anticipate for tech stocks in Q2Get My Guide

APPLE EXPECTED TO POST REVENUE AND EARNINGS DROP ON REDUCED SALES

Apple Inc is due to release its Q2 results where it is largely anticipated that the smartphone maker will post declines on both revenue and earnings. Revenue and earnings are likely to print around 5% and 6% lower in the three months ending in March, compared to the same period last year.

However, the company is also expected to reveal a sizeable decline in expenses as the company has undergone a period of cost cutting which has thus far avoided mass layoffs. The tech sector has shed thousands of jobs after commencing a hiring spree after lockdown. In contrast, Apple did not inflate its wage bill in the same way with CEO Tim Cook taking a hefty salary cut in an attempt to cut back on costs.

Looking at the daily chart, Apple has clearly been one of the outperformers helping drag the rest of the Nasdaq higher. However, at such elevated prices, Apple would really need to wow investors if it is going to head back towards the swing high of 176.15 without a pullback towards trendline support. Support comes in at the longer-term trendline before 162.00.

Another thing to note is the appearance of negative divergence playing out on the RSI, which hints that a pullback may be on the cards.

Apple Daily Chart

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