Apple Hiring News Hits Sentiment
Shares inUS tech giant Apple fell sharply yesterday amidst reports that the company willscale back hiring and spending into 2023, citing concerns over the economy. Accordingto a Bloomberg report which ran yesterday, sources at the company confirmedplans to reduce expenditure in certain teams next year, in light of the projecteconomic downturn facing the US and the ongoing surge in inflation which iseating into costs. A growing number offirms, mainly in the tech sector, have highlighted similar plans as a defensivemove in the face of the anticipated recession across year-end
Apple is scheduledto report second quarter earnings next week and the market is looking for bothEPS and revenues to have fallen back from Q1. Apple will no doubt have beneimpacted by the return of lockdowns in China over recent months and, with fearsof further lockdowns to come, Apple is suffering disruption in one of its keymarkets.
Followingthe latest rebound off the 133.11 level, Apple shares have since broken outabove the bearish trend line from YTD highs and have been grinding higherwithin a corrective bull channel. Price has now stalled into the 151.36resistance and, while this holds, the risk is that downside resumes, puttingthe focus back on 133.11. If Apple shares can break current highs, however,focus will shift to 167.45 next.