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Apple Fails to Inspire Investors Today, but the Future Is Bright

Recent manufacturing and construction data suggest the U.S. economy will continue growing, but still not as much as many hoped. The Institute for Supply Management this morning released its heavily watched manufacturing index, which stood at 55.4 in May, up slightly from 54.9 in April and above the 50 market that indicates expansion in the sector.  

The Commerce Department also said that construction spending was up 0.2% in April to a $953.5 billion annual rate, the highest since March 2009.

Market indexes took the news with some apathy today, and the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was up just 0.11% after losing some ground earlier in trading. The Nasdaq Composite (NASDAQINDEX: ^IXIC  )  was down 0.25%, in part because of a 1.1% decline in shares of Apple (NASDAQ: AAPL  ) .

Today's update should ensure that more people are tied to their iOS and OSX devices. Image source: Apple.

Buy the rumor, sell the news
Apple previewed updates for iOS and OSX today at its Worldwide Developers Conference, better known as WWDC. Apple introduced features that improve collaboration between devices, improved iCloud services, and stronger developer functionality, but the market hasn't taken the news well.

What's important to keep in mind is that Apple's stock has risen considerably in the past year and is up about 20% in just over a month.

AAPL Chart

AAPL data by YCharts.

The "sell on the news" crowd is at work again today despite some interesting new features for Apple devices. For example, a new health app will allow you to integrate health-related data into one place and even pull data from Epic's health-care information.

This also wasn't the place for Apple to introduce groundbreaking new products. Those usually come in the summer or fall, when iPhone and iPad refreshes are expected and new mobile devices and/or an Apple TV update could be in store.

Investors shouldn't panic at the drop in Apple's stock price and can take some positives from today's announcement. The upgrades to iOS and OSX will keep Apple users even more intertwined and offer more features that Android and Windows Phone don't have. Integration and collaboration are keys to making Apple's products "stickier," which helps drive earnings over the long term.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

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  • Report this Comment On June 02, 2014, at 4:02 PM, makelvin wrote:

    "...Apple Fails to Inspire Investors Today..."

    I think this WWDC is way too technical for most investors to fully comprehend what was presented. This is actually one of the few developer conference keynote that caters mainly to the "developers" instead of consumers and journalists.

    What was presented will have a huge impact to the future apps for Apple devices to come. A complete new, more efficient, faster execution programming language. A 2D and 3D object physics engine. A new Metal 3D rendering library that executes 10X faster than before without any new hardware. A new plug-in extension feature that allows other apps to cooperate with one another without compromising security. Allows for new keyboard plug-in extension to replace the native Apple keyboard. The Continuity feature that allows all of Apple's devices, Mac, iPhone, iPod Touch, and iPad to seamlessly work with one another and continue where one has left off. The Health Kit and Home Kit which allows developers to develop apps in the health monitor and home automation in a unified programming hierarchy. The list just goes on and on with these new API and software features for the developers.

    All of these means Apple will enable its developers to develop better and more powerful apps with less time and less effort than before. Apple will continue to strengthen their ecosystem with more interesting apps which will in turn attract more consumers in buying their devices. For developers, this is actually one of the more interesting WWDC in years.

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Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2979692, ~/Articles/ArticleHandler.aspx, 9/2/2015 7:57:34 PM

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Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

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