Hong Kong is reporting a couple of dozen day-to-day cases of COVID-19, enough of a rise to trigger aggressive action from the government. Florida recorded over 15,000 brand-new cases on Sunday. New shutdown orders might be inevitable if the state cant get the infection under control, which would likely suggest that Disney World would need to be shut down once again.
Disneys parks are an important part of its organization, and its U.S. parks are particularly important. With the U.S. stopping working to contain the infection, Disneys capability to keep its parks open stays highly unpredictable. Disney stock was up 0.4% in the afternoon despite the Hong Kong news.
The Dow Jones Industrial Average (DJINDICES: ^ DJI) was up 2.1% at 1:50 p.m. EDT Monday regardless of extreme uncertainty surrounding the pandemic and the healing of the U.S. economy. U.S. states including Florida and Texas have been reporting record varieties of verified cases, and reports are showing that healthcare facilities in some locations are lacking ICU capacity.
Driving the Dow greater on Monday was Apple (NASDAQ: AAPL), which received 2 expert rate target bumps. Disney (NYSE: DIS) stock was likewise higher despite news that the business was re-closing its Hong Kong park due to a rise in COVID-19 cases.
Apple stock strikes new high
Apple got two expert rate target bumps on Monday which helped propel the stock to a brand-new all-time high.
Morgan Stanley raised its Apple rate target from $340 to $419 and repeated its “obese” rating. Morgan Stanley analyst Katy Huberty argued that Apples iPhone trade-in program, along with the high resale value of iPhones, gives the company a competitive benefit. Huberty sees the trade-in program driving adoption of 5G iPhones later this year.
Wedbush is much more positive on Apple, raising its rate target from $425 to $450 and keeping its “outperform” ranking. Wedbush analyst Daniel Ives expects 5G to drive Apple to a $2 trillion market cap next year. Ives has grown more positive in the iPhone growth story after favorable channel checks in Asia, and he sees China as an important element to the development story. Wedbush is likewise positive on Apples services organization, appointing a $600 billion to $650 billion assessment to the fast-growing part of Apple.
Morgan Stanley raised its Apple price target from $340 to $419 and repeated its “overweight” rating. Morgan Stanley expert Katy Huberty argued that Apples iPhone trade-in program, as well as the high resale value of iPhones, offers the business a competitive advantage. Wedbush is even more optimistic on Apple, raising its cost target from $425 to $450 and maintaining its “outperform” score. Wedbush analyst Daniel Ives expects 5G to drive Apple to a $2 trillion market cap next year. Wedbush is likewise optimistic on Apples services business, assigning a $600 billion to $650 billion appraisal to the fast-growing part of Apple.
Neither analyst appears concerned about the impact of the pandemic and the economic crisis as needed for iPhones later on this year. If the pandemic is still raving in the United States when Apple launches its 5G iPhones, demand could be seriously muted.
Apple stock was up 2.9% in the afternoon. Consisting of Mondays rally, the tech stock is now up about 35% because the beginning of the year.
Disney re-closes Hong Kong park
Disney has actually reopened its Disney World resort in Florida regardless of that state publishing record varieties of verified COVID-19 cases. In Hong Kong, where everyday cases have actually begun to get again, Disney is re-closing Hong Kong Disneyland.
Disneys Hong Kong park will close on July 15. Hong Kongs government has actually closed down different types of businesses and limited group events to four individuals in action to a boost in COVID-19 cases. Hong Kong Disneyland Resort hotels will stay open with a lower level of services.
Image source: Getty Images.
