STREAMING NOW: Watch Now

Apple's iPhone is the MVP of the stock market

1. Wall Street's $165 billion golden goose: Apple's iPhone just might be the biggest cash c...

Posted: Sep 10, 2018 8:15 AM
Updated: Sep 10, 2018 8:15 AM

1. Wall Street's $165 billion golden goose: Apple's iPhone just might be the biggest cash cow on Wall Street.

More than a decade after its debut, the iPhone remains the chief moneymaker for Apple, America's first $1 trillion company and one of the most widely held stocks.

The iPhone alone is expected to rake in $165 billion in sales this fiscal year, or 62% of Apple's total projected revenue.

It's a stunning amount of money from a single product line. To put that figure in context, the iPhone generates more revenue than 492 of the 500 companies in the S&P 500 did last year.

In fact, Apple could use its annual iPhone sales to buy Tesla ($45 billion) and General Electric ($108 billion) — and still have enough cash left over to scoop up Campbell Soup ($12 billion).

Apple's iPhone is even bigger than the online stores of Amazon, which are projected to generate $125 billion of sales this year.

Considering how much Wall Street has riding on the iPhone, it's no surprise that investors are getting excited about Wednesday's expected announcement of new models. Apple's shares surged nearly 20% in August, their best month in nearly a decade.

Apple and Amazon are clearly the $1 trillion gorillas in the room. The two widely held stocks have accounted for about 29% of the S&P 500's total gains this year, according to Howard Silverblatt of S&P Dow Jones Indices.

But in the longer run, Apple has been in a league of its own. Since the end of 1999, Apple has lifted the S&P 500 by 11% and accounted for more than half the tech sector's returns, according to Silverblatt.

Apple's success impacts millions of people because it's a mainstay in mutual funds and retirement accounts. Nearly 5,000 mutual funds own Apple shares valued at about $350 billion, according to data from Morningstar.

Apple is making some progress in diversifying its business beyond the iPhone. The company's services division, which includes the App Store, Apple Pay, iTunes and Apple Music, hauled in $30 billion last fiscal year. That's expected to grow 25% this year to $37.5 billion before reaching $45 billion in fiscal 2019.

But for now, the iPhone remains front and center. Investors are hoping that Apple will offer a greater variety for the iPhone X, enticing more people to upgrade.

More than 500 million current iPhone owners are using a model at least two years old, according to estimates by PiperJaffray.

"The installed base of iPhone users on older devices continues to grow," PiperJaffray analyst Michael Olson wrote on Friday while lifting his price target on Apple to $250.

That could be very good news — for Apple and Wall Street alike.

2. Checkup on the global economy: Turkey, the United Kingdom, Russia and Japan will report Monday on how much — or little — their economies grew in the second quarter.

The Turkish economy is in particularly rough shape, upended by curious political decisions, economic policy confusion, American interest rate hikes and a crashing lira. Sanctions and Brexit are respectively weighing on Russia and the UK. But the Japanese economy has performed surprisingly well recently after decades of stagnation.

3. Jack Ma: Alibaba co-founder Jack Ma is reportedly set to announce his plans for retirement as executive chairman of the company and details on the transition Monday, his 54th birthday. The company, which has a market value of more than $400 billion, reported sales that topped forecasts last quarter, led by a more than 60% increase in retail revenue.

4. Kroger earnings: America's largest grocery chain isn't standing pat. It has launched forays into China, a home delivery service and visions of a plastic-bag-free future last month alone.

That's because Kroger's world has been upended by Amazon, Walmart and a digital landscape that is reshaping the grocery business. Kroger will provide an update on its shifting strategy Thursday when it reports its quarterly earnings.

5. 10 years on: You're going to hear a lot this week about the anniversary of the financial crisis.

It was a decade ago that Lehman Brothers collapsed, and although the economy is strong again, plenty of scars remain. Three major figures from those dark days — former Fed chairman Ben Bernanke and ex-Treasury secretaries Tim Geithner and Hank Paulson — will reflect on the crisis in an interview Wednesday at the Brookings Institution.

6. Coming this week:

Monday — Turkey, Russia, Japan and the United Kingdom report second-quarter GDP; Alibaba announces Jack Ma succession plan

Tuesday — UK reports its unemployment rate

Wednesday — Brookings Institution hosts a panel on the financial crisis, Apple announces its new products

Thursday — Kroger reports earnings, US consumer inflation report, European and English central banks report interest rate decisions

Friday — US retail sales and consumer sentiment reports

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 268672

Reported Deaths: 5917
CountyCasesDeaths
DeSoto17928195
Hinds17030337
Harrison14510212
Rankin11315223
Jackson11054193
Lee9109147
Madison8663171
Jones6853120
Forrest6260125
Lauderdale6161196
Lowndes5582123
Lafayette5269101
Lamar508765
Washington4965125
Bolivar4164110
Oktibbeha411585
Panola389881
Pontotoc380460
Monroe3727111
Warren3716103
Marshall360172
Union360165
Pearl River3527106
Neshoba3516158
Leflore3132110
Lincoln308389
Hancock300963
Sunflower294277
Tate281862
Alcorn274055
Pike272984
Itawamba271263
Scott264055
Yazoo258456
Prentiss255454
Coahoma252455
Copiah251549
Tippah251551
Simpson244872
Leake238967
Marion228274
Covington224873
Grenada224673
Wayne216336
Adams216271
Winston208271
George206440
Newton201447
Attala197465
Tishomingo196361
Chickasaw190245
Jasper183138
Holmes172568
Clay168637
Tallahatchie158035
Stone153625
Clarke148762
Calhoun142022
Smith131926
Yalobusha124935
Walthall115438
Greene114929
Noxubee114526
Montgomery112936
Lawrence107917
Carroll106922
Perry105931
Amite102727
Webster98024
Claiborne90125
Tunica89621
Jefferson Davis89330
Benton86923
Humphreys85625
Kemper81220
Quitman7169
Franklin71017
Choctaw64013
Wilkinson60125
Jefferson57321
Sharkey45717
Issaquena1616
Unassigned00

Alabama Coronavirus Cases

Cases: 445909

Reported Deaths: 6896
CountyCasesDeaths
Jefferson651891049
Mobile32138590
Madison28596223
Tuscaloosa21703276
Montgomery20220336
Shelby19584138
Baldwin17496216
Lee13378109
Morgan12741145
Etowah12196189
Calhoun11626228
Marshall10513126
Houston9097168
Limestone842481
Cullman8363125
Elmore8283112
Lauderdale7986112
DeKalb7935112
St. Clair7915139
Talladega6552112
Walker6068184
Jackson605649
Colbert560194
Blount551794
Autauga544065
Coffee470569
Dale415186
Franklin378150
Russell362816
Chilton348079
Covington344681
Escambia342244
Tallapoosa3184109
Dallas314197
Chambers308575
Clarke307339
Pike267735
Lawrence256958
Marion255763
Winston235243
Bibb224751
Geneva214747
Marengo212031
Pickens201831
Barbour188240
Hale187444
Fayette181230
Butler175960
Cherokee167433
Henry161325
Monroe153521
Randolph148236
Washington144027
Clay131050
Crenshaw126245
Macon124337
Cleburne123627
Lamar121324
Lowndes117636
Wilcox109422
Bullock105829
Perry100518
Conecuh98222
Sumter90828
Greene78323
Coosa64619
Choctaw52224
Out of AL00
Unassigned00
Tupelo
Cloudy
45° wxIcon
Hi: 51° Lo: 44°
Feels Like: 38°
Columbus
Cloudy
50° wxIcon
Hi: 56° Lo: 49°
Feels Like: 50°
Oxford
Cloudy
37° wxIcon
Hi: 50° Lo: 38°
Feels Like: 28°
Starkville
Cloudy
48° wxIcon
Hi: 55° Lo: 45°
Feels Like: 43°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather