Apple Inc. (AAPL): Positive Momentum Continues
Favorable consumer spending data and boost from Apple Inc. (NASDAQ:AAPL) China deal should help sustain the market’s positive momentum in today’s session. Stocks were up strongly last week on a delayed seasonal bump, with the Fed announcement pushing stocks towards closing an impressive year in style. Volumes typically thin out in these final sessions, but the overall sentiment should remain positive.
This morning’s positive consumer spending report builds on the recent run of favorable economic data. The positive revision to the Q3 consumer spending data in Friday’s final look at the GDP report showed the improving trend coming into the final quarter of the year. The ‘headline’ Q3 GDP growth had a big inventories component, reversal of which is expected to keep Q4 GDP growth at roughly half of that quarter’s growth pace. But improvements on the spending front, along the lines of this morning’s reading, will be the more important metric than any pullback in the current quarter’s ‘headline’ GDP growth.
On deck for release a little later today is the final look at the University of Michigan Consumer Sentiment survey for December, which is expected to show a modest gain from the preliminary December read a few weeks back, but materially up from the shutdown-induced weakness the month before. This key measure of consumers’ mood will end the year below the July high, but has nevertheless showed notable momentum this holiday month.