Wall Street Week Ahead: In earnings frenzy, will Apple get crushed?
By Angela Moon
NEW YORK (Reuters) - Apple may have lost nearly half of its value since its peak in September, but it's still the talk of the town. Only this time, it's all about how low can it go?
Wall Street would normally be set for a technical rebound after a drop of more than 2 percent, the worst weekly decline so far this year. But that could easily change by the time the iPhone maker reports its earnings, which are due on Tuesday after the closing bell.
"It's not the $700 stock anymore, but Apple still has huge weighting on indexes, and it's still the window into the state of consumers, a sort of reality check," said James Dailey, portfolio manager of Harrisburg, Pennsylvania-based TEAM Financial Asset Management.
Wall Street has been recently pressured by a slew of disappointing economic data and weaker-than-expected earnings reports from blue-chip companies like IBM (IBM.N: Quote).
For the week, the Dow fell 2.1 percent, the S&P 500 also lost 2.1 percent and the Nasdaq slid 2.7 percent.
"The critical level next week would be 1,540 on the S&P 500, which is near the 50-day moving average," said Andre Bakhos, director of market analytics at Lek Securities in New York.
He added that a dip below this mark would bring "additional weakness to as low as 1,500 levels."
On Friday, the benchmark S&P 500 index closed at 1,555.25. Continued...