Apple’s Onshoring Announcement Brings Rebound on Thursday – Wall Street Sector Selector

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Despite declines by the Dow Jones Industrials and the S&P 500, Apple’s onshoring announcement to build Macs in the U.S. boosted the Nasdaq.

While the Dow Jones Industrial Average and the S&P 500 spent Thursday trying to stay out of the red, Apple’s onshoring announcement pushed the Nasdaq solidly into positive territory.  Tim Cook’s announcement that Apple would spend over $100 million building Mac computers in the United States (instead of China) next year caused the stock to advance in excess of 1.5 percent on Thursday (NYSEARCA:AAPL).  The scenario was the inverse of Wednesday’s situation wherein Apple’s decreased share of the tablet market caused the stock to fall, dragging the Nasdaq down with it.  Selling AAPL Puts: Naked or as a Spread

As of 2:24 EST, the Dow Jones Industrial Average advanced 14 points (0.11 percent) to 13,049.  The S&P 500 Index rose 0.18 percent to 1,411 – staying just below its 50-day moving average of 1,417 and above its 200-day moving average of 1,385 (NYSEARCA:SPY).  The S&P 500 chart exhibits an inverse head-and-shoulders pattern (see green bar on chart) which suggests that the index could make a further advance.  The 50-day moving average of 1,417 is an important resistance point for the S&P.  If the S&P breaks past 1,417 it could quickly make more progress (Chart courtesy of Stockcharts.com)  The Nasdaq Composite climbed 0.47 percent to 2,987 (NASDAQ:QQQ).  The Russell 2000 Index advanced 0.10 percent to 821 (NYSEARCA:IWM).

The “Dollar Bull” Index ETF (NYSEARCA:UUP) advanced by 12 cents (0.55 percent) to 21.95 as of 1:44 EST.

As of 1:30 EST, the S&P 500 Volatility Index – or VIX – advanced 1.15 percent to 16.65  and the VIX Short-Term Futures ETN rose 0.97 percent to 30.45 (NYSEARCA:VXX).

European stocks climbed further into positive territory on Thursday after the European Central Bank announced that it would keep its benchmark lending rate at 0.75 percent.  The Euro STOXX 50 Index finished Thursday’s trading session with a 0.44 percent advance to 2,603 – staying above its 50-day moving average of 2,512 (NYSEARCA:FEZ).  The FTSE 100 Index rose 0.16 percent to 5,901 (NYSEARCA:EWU).  The German DAX Index jumped 1.07 percent to 7,534 (NYSEARCA:EWG).  France’s CAC 40 Index climbed 0.31 percent to 3,601 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index advanced 0.35 percent to 7,910 (NYSEARCA:EWP).  Italy’s FTSE MIB Index fell 0.75 percent to 15,835 (NYSEARCA:EWI).  3 Post-Fiscal Cliff Investment Opportunities

As of 1:48 EST, the euro sank 0.84 percent against the dollar, trading at $1.2958 (NYSEARCA:FXE).  Dollar Gains Ground vs. Euro After ECB’s Draghi

On London’s ICE Futures Europe Exchange, January futures for Brent crude oil declined by $1.86 (1.72 percent) to $106.09/bbl. (NYSEARCA:BNO, NYSEARCA:USO).

December Gold futures advanced by $4.70 (0.28 percent) to $1,697.10 per ounce (NYSEARCA:GLD).

ETF Summary: 

SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)  +0.18%  holding above the breakeven level following the “less bad” report on initial unemployment claims.

SPDR EURO STOXX 50 ETF (NYSEARCA:FEZ)  -0.84%  completely diverging from the 0.44 percent advance by the Euro STOXX 50 Index.

Technology Select Sector SPDR ETF (NYSEARCA:XLK)  +0.63%  as Apple’s advance helps boost the entire tech sector.

iShares Barclays 20+ Year Treasury Bond Fund (NYSEARCA:TLT)  +0.49%  benefiting from the impasse in budget negotiations despite advancing stock prices, which would normally boost investors’ appetite for risk, making the safe haven of government bonds less attractive.  Learn More About iShares ETFs

SPDR S&P 500 INDEX ETF (NYSEARCA:SPY)  +0.16%  as the decline in initial unemployment claims provides a modest incentive for a bit of bullishness.

Bottom line:  Apple’s onshoring announcement – that it would spend over $100 million building Mac computers in the United States (instead of China) next year, helped the stock pull the Nasdaq back into positive territory on Thursday.

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