Major averages fell yesterday on higher volume. The price of gold surged 4% due to investors searching for safe assets amid concerns about slumping global economies such as Japan who had its bonds downgraded, weak manufacturing data out of China and the eurozone, and news of weak holiday sales. The weakness in the US dollar also supported gold’s rally.
Apple (AAPL) which makes up about 8% of the NASDAQ Composite Index dove as much as -6.5% on a mixed basket of news items, some which were positive analyst price target upgrades, though Morgan Stanley announced it was trimming its position of 1% as AAPL has advanced nearly 50% this year, which may have sparked other institutional selling. With a current market cap of $677 billion making it the largest company in the world, it begs the question how much higher AAPL can go. AAPL finished the day down -3.25%.
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