It has been a difficult trading market lately with some intense pressure on big-cap momentum stocks. However, Apple (AAPL) continues to hold up quite well. The stock has an attractive chart as it pushes up against overhead resistance in the $216 area.
While the chart is attractive and it isn't at a bad entry point, the problem is that Apple is now more a "safe" stock than a "momentum" play. It is a place where money can be parked without too much concern that it is going to suddenly fall apart like many of the high-beta momentum stocks are doing this week.
Apple has a tremendous amount of cash and its constant buying of its own shares provides good support. Apple is even taking advantage of the very low interest rates to issue bonds and raise more funds, which will likely be used to buy back even more shares.
Then company is expected to have nearly flat EPS growth in 2019 and 10% growth in 2020 so it isn't a great value play with a trailing P/E multiple of 18x. Still, its balance sheet, buybacks and name brand are the attraction. It is the sort of stock that someone such as Warren Buffett can feel comfortable holding for a very long time.
Apple is holding its new product media "By Innovation Only" event at 1 p.m. ET. There is going to be a new iPhone but major changes are not anticipated at this time as it is likely that 5G versions will be announced later. Updates to Apple Watch, iPad and Macbooks are expected as well as well as new information about its streaming services.
While this event will receive much media attention it is unlikely to have much impact on the stock. The news is well anticipated and there isn't likely to be any blockbuster surprise. Apple will continue to deliver like it always has and it is a safe place for many to park capital and not worry too much.