Apple Inc will have to manufacture its products inside the United States in order to avoid tariffs on imports from China, US President Donald Trump said on Twitter on Saturday.
Apple shares closed lower for a third consecutive trading session on NASDAQ on Friday. The stock went down 0.81% ($1.80) to $221.30, after touching an intraday low at $220.71, or a price level not seen since August 29th ($219.41).
Shares of Apple Inc have surged 30.77% so far in 2018 compared with a 7.41% gain for the underlying index, S&P 500 (SPX).
In 2017, Apple’s stock gained 46.11%, thus, it again outperformed the S&P 500, which registered a 19.42% return.
“Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now,” President Trump said in a post on Twitter.
Meanwhile, in a statement aboard Air Force One on Friday, Trump said that tariffs might be imposed on additional $267 billion worth of Chinese imports, on top of a $200-billion list of imports (mostly consumer goods) that would be subject to tariffs of between 10% and 25% in the coming days.
“The $200 billion we are talking about could take place very soon depending on what happens with them. To a certain extent it’s going to be up to China,” President Trump was quoted as saying by Reuters. “And I hate to say this, but behind that is another $267 billion ready to go on short notice if I want. That totally changes the equation.”
In a Friday letter, Apple Inc told trade officials that prices for a “wide range” of its products, including the Apple Watch, would be affected by the planned new tariffs.
According to CNN Money, the 34 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $216.50, with a high estimate of $275.00 and a low estimate of $165.00. The median estimate represents a 2.17% downside compared to the closing price of $221.30 on September 7th.
The same media also reported that 22 out of 40 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 14 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, Monday’s levels of importance for the Apple stock are presented as follows:
R1 – $221.73
R2 – $222.15
R3 (Range Resistance – Sell) – $222.58
R4 (Long Breakout) – $223.86
R5 (Breakout Target 1) – $225.36
R6 (Breakout Target 2) – $225.97
S1 – $220.87
S2 – $220.45
S3 (Range Support – Buy) – $220.02
S4 (Short Breakout) – $218.74
S5 (Breakout Target 1) – $217.24
S6 (Breakout Target 2) – $216.63
By using the traditional method of calculation, the weekly levels of importance for Apple Inc (AAPL) are presented as follows:
Central Pivot Point – $223.89
R1 – $227.08
R2 – $232.85
R3 – $236.04
R4 – $239.22
S1 – $218.12
S2 – $214.93
S3 – $209.16
S4 – $203.38
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