Have you ever wondered why trillions of investment dollars are indexed to the Standard & Poor’s 500 Index but almost nothing (relatively speaking) is tied to the Dow Jones Industrial Average? Go no further than yesterday’s market.
Apple's quarter was far from clean. Same for its earnings call.
The tech-heavy Nasdaq was up more than 3 per cent. The ARK Innovation ETF was up 6 per cent, and is now up 50 per cent in a bit over a month. This depresses the risk premium on speculative stocks. If I was asked to summarise the reports from Apple, Alphabet, and Amazon in a single word, it might be “sober”.