Just One Stock Was Responsible For 35% Of The Dow's Gains In May

Earlier we showed that despite some significant cross-asset volatility, not to mention substantial declines especially across emerging markets and Italian stocks and bonds, in the month of May quite a few markets and asset-classes shrugged off the EM and Italian woes, and posted modest if steady returns, including the FTSE 100 (+2.8%), Stoxx 600 (+0.2%) and, of course, the S&P 500 which rose +2.2% in the month.

Yet what is far more remarkable is just how concentrated the S&P gains were in May, and how just one company was responsible for a quarter of the S&P500's gains.

As Bloomberg's Andrew Cinko calculates, it was all about Apple, which accounted for 23% of the S&P 500's gains last month, its biggest contribution since August of last year.

As a reminder Apple hit a new all time high thanks to its latest, massive buyback plan and also thanks to the latest Buffett purchase of AAPL stock by Buffett who added another 75MM AAPL shares, bringing this total stake to 240 million shares, worth over $45 billion.

Chart

Whatever the reason behind Apple's surge, without it the S&P's gain would have been 1.65% instead of 2.16%, meaning that just AAPL alone was responsible for 0.50% of the S&P's May gain.

This was AAPL's biggest monthly contribution since last August, when AAPL alone accounted for over 150% of the S&P's return. However, as Cinko notes, "in the intervening months, Apple's effect on the broad market was small mostly because it's move was paltry while other stocks bounded higher or lower. For example, in January Apple sank 1.1% while the index rallied 5.6% as Amazon surged 24%."

However, in May, the tables were turned with Apple soaring 13.1% while the S&P 500's second and third biggest stocks, Microsoft and Amazon, rose 5.7% and 4.1% respectively.

Meanwhile, AAPL's contribution to the Dow was even greater, accounting for 35% of so-called "Industrial Average" last month, followed closely by Boeing with 34%.

Comments

NidStyles skbull44 Fri, 06/01/2018 - 18:02 Permalink

You’re probably correct on that.

 

The funniest thing about Duginists, he hated his own people and placed Jews above them the same way the early Leninist and Trotskyites did, and that’s what they want to return to? Eternal slavery to the patch of dirt calling itself Israel?

I think the philosophy itself needs a major restructuring. The same Duginists will claim they follow one of his other adherents, but the core philosophy is the same. It’s Kalergi with a modern twist. The Queen of England, whom has no right to wearing the jewels is a Duginist.

Whenever I meet a person that puts absolutism as their primary constraint on relations, there are two things I notice immediately. If they ever see themselves in a superior position, for whatever reason, they will turn on you like a dog. If you’re ever in a superior or equal position they will connive and conspire to hold you down until they can wring that position away from you as if they owned you. 

 

Yes, I must be the stupid one. I saw right through your bullshit at first glance. You have my family, but you’re still losing ground. You can keep them if they mean that much to you. 

I am not stopping until you lose everything Schlomo. What you’ve taken from us and the rest of humanity will be ripped out of your hands.

 

In reply to by skbull44

adr NidStyles Fri, 06/01/2018 - 16:39 Permalink

Bwah ha ha ha ha, most resilient glass ever thanks to Apple.

 

Millions of shattered screen users probably don't agree.

Corning made Gorilla glass decades ago and couldn't find a use for it. If you are taking about the sapphire screen, it isn't even in any iPhone yet.

When people were using their shitty iPhone with a shattered screen I'd tell them to watch as I tossed my Sony phone in the air and let it hit the ground. HOLY SHIT, they'd say when the phone survived with hardly a scratch.

The iPhone is five years behind the cutting edge competition. Apple doesn't drive anything anymore. They had to be pulled kicking and screaming into a larger format phone.

In reply to by NidStyles

NidStyles adr Fri, 06/01/2018 - 17:49 Permalink

I have dropped my phone down several flights of stairs already. Only minor scratches that would come out with a little polishing. 

Who wants large format screens? Old people? I want the thing to still fit in my pocket so I am not walking around with it like it were a status symbol, because it isn’t. It’s a tool. I’m not a peacock. 

 

Dugin was a loser.

In reply to by adr

Jballsquared BankSurfyMan Fri, 06/01/2018 - 16:06 Permalink

Paid over 1k for iPhone and would have paid more. 

Maybe the confusion is “phone”. I’ve maybe had two voice conversations on the 6 months I’ve had it. 

But I have used 117GB of data (cellular only, not wifi). That’s about 1,100 hours spent on my phone in 6 months. So I’m at 90 cents an hour and I will have it for 2-3 more years. And I will spend about $1,500 on deep discount cell service/data in that same time.  

Who gives a fuck about the grand? 

In reply to by BankSurfyMan

Versengetorix Fri, 06/01/2018 - 15:33 Permalink

This is remarkable for a man who, when he rose to power, devoted two of his first three press conferences to telling people how much he enjoyed sucking dick.

DEMIZEN Fri, 06/01/2018 - 15:38 Permalink

I think it has more room to go do not underestimate the stupidity of the desperate. they will push fang to the moon the masses just don't know any better.

MusicIsYou Fri, 06/01/2018 - 16:23 Permalink

Interesting. Apple sales have been disappointing, and everybody already knows what a smartphone is, but somehow Apple can drive markets, that's because markets are B.S. Apple died when Steve Jobs left the world, and Apple has not had a great concept since.

adr Fri, 06/01/2018 - 16:42 Permalink

The schnozes just want to put the trillion dollar market cap notch in their belt. The actual company of Apple is meaningless.

AAPL is a playtoy of algorithms and buffoons.

The largest company in the world makes something that nobody really needs and has hundreds of competitors that make a superior product for half the cost. To bid the company higher is insanity any way you look.