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If
Apple Inc. (NASDAQ; AAPL) investors were hoping that the announcement of the firm's new wearable timepiece would send the stock sharply higher, they were disappointed.
Following Apple's Monday extravaganza where CEO
Tim Cook revealed the
Apple Watch, the stock ended the session at $127.14, with a gain of 54 cents, or 0.43 percent.
It gave back some gains from earlier in the session. Trading volume was 54 percent higher than average, not necessarily a good sign when a stock rallies and reverses lower.
Lackluster Response
Not surprisingly in this age of snark and negativity and cynicism, the announcement was also followed by a boatload of articles with the general theme of "Why you shouldn't buy Apple watch."
Fortunately, the snark won't affect share price, either way.
Why Snark Doesn't Matter All That Much
Institutional owners, such as mutual funds, hedge funds, banks and insurance companies are behind share price movement. Monday's action in Apple suggests that institutional money managers greeted the news with a collective, "Meh."
However, that doesn't suggest that they would abandon any ongoing Apple-buying plans. The large institutions don't amass a position in a stock all at once. Instead, managers often add to positions over weeks, months and even years. If the watch – or any other product – ends up boosting the bottom line, fund managers will take note.
A Closer Look At Mutual Funds
Many of the mutual funds with the largest positions in Apple are funds that track the Standard & Poor's 500 or other popular indices. They include the
, the
Vanguard 500 Index Fund Investor ClassLoading...
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, the
Schwab(R) S&P 500 Index FundSWPPX and the
Fidelity Spartan(R) 500 Index Fund Investor Class
FUSEX.
Apple's pending addition to the Dow Jones Industrial Average won't directly affect mutual funds, at least not in the sense that Dow indexed funds will have to buy shares. That's because the most popular funds tracking the Dow are the
SPDR Dow Jones Industrial Average ETFDIA and the
iShares Dow Jones U.S. Index Fund (ETF)IYY.
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Posted In: NewsEventsTechApple WatchDow Jones Industrial AverageMutual FundsS&P 500Standard & Poor's 500swppxTim Cook
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