On the last trading day of January, 2015, Tyler Mathisen presented a brief summary of highlights and downfalls which characterized Wall Street over the first month of this New Year on CNBC. Prominent amongst these was the mention of Apple Inc (NASDAQ:AAPL) and its whopping earnings courtesy of iPhone 6 followed by summing up of US economy.
Significant expansion in GDP was regarded as a good sign that was indicative of the economy having quickened its pace of growth but experts did not refrain from hinting on a slow-down during the coming months. While plunging gasoline prices are being held culprit, economists feel that even if the slow-down occurs, it will be short-lived courtesy of the strong fundamentals of the US economy. As Nicholas Colas, Convergex’s chief marketing strategist pointed out –
“If Rip Van Winkle were to wake up today and see where oil is and where bond yields are…he would be very tempted to say that we must be in a recession.”
Also under the scanner were savings and trends indicate that Americans are more worried about their old-age income than they have ever been. Gas prices are also expected to rise in the near future as consequences of measures like reduced spending and closing down of oil rigs is likely to manifest.
At a time when most American companies are experiencing lower sales owing to a strong US Dollar, Apple Inc (NASDAQ:AAPL) stands out as an exception wherein it earned a revenue of $18 billion which was quite impressive. Instrumental in this was the sale of 75 million iPhone 6 sets, implying that Apple Inc (NASDAQ:AAPL) sold at least 10 devices every second for three months at a stretch on a constant basis. Another boost is likely to be provided to the company’s profits when an advanced graphics processor will be integrated into the device and improve gaming experience.
Reacting to a stellar performance, shares of Apple Inc (NASDAQ:AAPL) touched the $120-mark during Friday, 30th January, 2015, trading session.
This article has been written by Vinita Basu.