The Dow Jones industry average (DJINDICES: ^ DJI) was up 2.1% on Monday at 1:50 p.m. EDT, despite extreme uncertainty surrounding the pandemic and the recovery of the US economy. U.S. states such as Florida and Texas have reported record numbers of confirmed cases, and reports indicate that ICU capacity is becoming scarce in some areas of hospitals.
The Dow was higher on Monday Apple (NASDAQ: AAPL)who has received two price increases for analysts. Disney (NYSE: DIS) The stock was also higher, although it was announced that the company would close its Hong Kong park due to an increase in COVID-1
Apple stock hits new high
Apple received two analysts’ price hikes on Monday, which helped bring the stock to a new all-time high.
Morgan Stanley raised its Apple price target from $ 340 to $ 419 and reaffirmed its “overweight” rating. Morgan Stanley analyst Katy Huberty argued that Apple’s iPhone trade-in program and the high resale value of iPhones give the company a competitive advantage. In Huberty, the trade-in program will drive the launch of 5G iPhones later this year.
Wedbush is even more optimistic about Apple: it raises its price target from $ 425 to $ 450 and maintains its “outperform” rating. Wedbush analyst Daniel Ives expects 5G to bring Apple to a $ 2 trillion market cap next year. After positive channel checks in Asia, Ives has become more confident in the iPhone growth story and sees China as an important part of the growth story. Wedbush is also optimistic about Apple’s services business, assigning the rapidly growing portion of Apple a valuation of $ 600-650 billion.
None of the analysts appear to be concerned about the impact of the pandemic and recession on iPhone demand later this year. If the pandemic in the U.S. is still raging when Apple launches its 5G iPhones, demand could be subdued.
Apple shares rose 2.9% in the afternoon. Including the rally on Monday, the tech share has risen by around 35% since the beginning of the year.
Disney closes Hong Kong Park again
Disney has reopened its Disney World Florida resort, despite the state posting record numbers of confirmed COVID-19 cases. In Hong Kong, where daily cases have increased again, Disney Hong Kong closes Disneyland again.
Disney’s Hong Kong Park will be closed on July 15th. The Hong Kong government has closed various types of companies and restricted group meetings to four to respond to an increase in COVID-19 cases. The hotels in the Hong Kong Disneyland Resort remain open with a lower level of service.
Hong Kong reports a few dozen cases of COVID-19 daily, enough of an increase to trigger aggressive government action. Florida recorded over 15,000 new cases on Sunday. New shutdown commands can be inevitable if the state cannot control the virus, which would likely mean that Disney World would have to be shut down again.
Disney’s parks are an important part of its business, and its US parks are particularly important. With the United States unable to contain the virus, Disney’s ability to keep its parks open remains highly uncertain. Disney stock rose 0.4% in the afternoon despite news from Hong Kong.