Apple Could Effect The Trade War?

Shares of Apple climbed nearly 3% higher at the open Monday, and while the stock gave back some gains it still finished the day with a 1.9% gain to lead the Dow Industrials higher.

Apple stock chart

The rally had several catalysts, the chief of which may have been a dinner meeting last Friday between Apple CEO Tim Cook and President Trump. During the dinner Mr. Cook told the President that the ongoing trade conflict with China is having a negative impact on Apple’s business, and could even be helping the company’s competition to an advantage over Apple. President Trump responded to the argument, saying that Cook “made a very compelling argument, so I’m thinking about it.”

That response came after Cook pointed out that one of Apple’s rivals, Samsung Electronics, the maker of the popular Android handset the Samsung Galaxy, does not pay any tariffs because they are based in South Korea.

Apple has been impacted by the ongoing trade war between the U.S. and China, but its stock remains 34.2% higher since the start of the year none-the-less. While investors are seeing slowing iPhone sales, they have also seen rising sales of wearables, such as the iWatch and AirPods, as well as increased revenue from the services side of Apple’s business.

While investor’s have been encouraged by recent earnings reports, the next big hurdle will be the release of the next generation of iPhones next month. If well received the stock should rally through the end of the year, but if they disappoint expect shares to come under heavy selling pressure.