As the superstore sell-offs roll on, Wall Street’s biggest name has sustained some of the least impairment.
Apple is one of the best equipped to weather any more market turmoil headed its way, says Gina Sanchez, CEO of Chantico Far-reaching.
“You could hide out in Apple as this kind of melts down yon because it is fairly stable and mature,” Sanchez told CNBC’s “Barter Nation” on Thursday.
No Dow Jones industrial average component has been spared February shrinkages, but Apple is in the middle of the pack in its declines this month. One-third of the Dow has persisted double-digit losses in February, while the index has dropped 9 percent. In the meanwhile, Apple, with a month-to-date loss of 7.5 percent, is the ninth best-performing store in the index. Disney, Nike, J.P. Morgan and Cisco are the best performers in the Dow in February.
On Monday and Thursday this week, when the Dow plummeted various than 1,000 points apiece, Apple shares declined 2.5 percent and 2.75 percent, individually. The tech giant is on track for a 3.5 percent drop this week, less than the XLK Technology ETF’s 6 percent insufficient and Dow’s 6.5 percent decline.
And according to one widely followed technician, Apple’s resilient cost out action could be a sign of strength to come.
“You haven’t got any sort of mechanical breakdown happening on the charts,” said Craig Johnson, senior detailed strategist at Piper Jaffray, on “Trading Nation. “All you’ve done is pullback to a longer-term uptrend sustenance line.”
Apple shares are currently trading around $155. The worn out broke below its 200-day moving average of $160.50 latest Friday when the Dow tanked 666 points, but has held within reach of that very. Technicians often look to moving averages as key inflection points for beasts. While Apple is currently 4 percent below that moving commonplace, Johnson believes the stock has shown some resilience.
Apple rations remain in correction territory Friday, roughly defined as a pullback of 10 percent or assorted from the 52-week high. Its shares have dropped 14 percent since their 52-week record on Jan. 18. Twenty-eight of the 30 Dow components finished the week in correction province.