Apple Inc AAPL shares are trading higher Monday alongside several technology names as the broader market rebounds following recent weakness.
What Happened: Markets tumbled last week after U.S. initial jobless claims unexpectedly fell to the lowest levels since April.
Jobless claims decreased by 16,000 for the week ending Sept. 24 to 193,000 from a downwardly revised level of 209,000 in the prior week, according to data the Labor Department released last week. The number came in well below average economist estimates of 215,000.
The SPDR Technology Fund XLK ended the third quarter in the red, marking its third straight negative quarter. The last time the XLK recorded three straight negative quarters was in 2002.
What Else Is Happening: A drop in treasury yields has also helped lift the broader technology sector in Monday's session. The 10-Year Treasury yield was hovering around 3.64% at time of publication. Lower rates increase the present value of future cash flows, which can positively impact the valuations of growth stocks.
In a new note to clients, Morgan Stanley also said that Apple's App Store revenue fell about 5% in September.
The App Store saw declines in U.S. markets, as well as in Canada and Japan, according to Sensor Tower data compiled by Morgan Stanley analysts. The analyst firm attributed the declines to a steep drop off in gaming revenue, which was down 14% in September. Despite the slowdown in App Store revenue, Morgan Stanley remains bullish on Apple stock.
AAPL Price Action: Apple has a 52-week high of $182.94 and a 52-week low of $129.04.
The stock was up 2.79% at $142.06 at time of publication, according to Benzinga Pro.
Photo: courtesy of Apple.
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