Stock futures strengthened their positions in overnight trading on Thursday, thanks to Apple, as Wall Street looks to wrap up a rollercoaster week on a high note.
Futures on the Dow Jones Industrial Average added about 100 points. Meanwhile, S&P 500 futures gained 0.3% and Nasdaq 100 futures advanced 0.7%.
Major averages experienced outsized intraday swings each day this week as investors continued to analyze the central bank’s pivot to tighter policy. The market’s fear gauge Cboe Volatility Index reached its highest point in more than a year earlier this week. The index traded above the 30 threshold.
Apple and its shares
On Thursday, Apple’s CEO Tim Cook stated that the company’s supply chain challenges were improving, sending shares up about 5% in extended trading while delivering a solid beat on earnings.
The company’s CEO said that the December quarter was worse than Apple’s September quarter in terms of supply challenges. However, Cook is projecting the March quarter to improve.
Apple surpassed expectations for sales in every product category except for iPads, and overall revenue was up 11% annually.
The company again did not provide official guidance about expectations for the current quarter. The tech giant has not provided guidance since the start of the pandemic, citing uncertainty.
It released new iPhone models in September, and this quarter was the first full quarter of iPhone 13 sales. Notably, sales were up 9% annually to $71.63 billion, although they are growing slower than its overall business.
Services, which include iCloud, Apple Music, search licensing, and App Store fees, reached great results. It is the company’s most profitable business unit. Furthermore, its rise contributed to Apple’s higher-than-expected gross margin.
The company’s other products category, which includes Apple Watch as well as AirPods, rose 13% year-over-year.
Apple’s computers are also quite popular around the world. So, it is not surprising that Macs had the strongest growth of any of Apple’s hardware lines, growing 25% over the last year to $10.85 billion.
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