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.

Confirmed Cases: 15229

Reported Deaths: 723
CountyConfirmedDeaths
Hinds99925
Lauderdale73561
Madison72023
Scott65012
Neshoba63038
Jones59825
Forrest55338
DeSoto5337
Rankin4217
Leake42112
Holmes39728
Copiah3104
Jackson30513
Attala29216
Yazoo2734
Newton2714
Leflore25831
Harrison2577
Lincoln25628
Monroe25525
Lamar2355
Oktibbeha23512
Lowndes2119
Pearl River20931
Pike20211
Adams19615
Noxubee1856
Wayne1771
Warren1719
Washington1687
Covington1652
Bolivar16011
Jasper1574
Smith15011
Lee1496
Kemper14411
Clarke14318
Chickasaw13312
Lafayette1314
Coahoma1214
Carroll11711
Marion1159
Clay1124
Winston1121
Claiborne1112
Lawrence1021
Simpson1010
Yalobusha905
Hancock9011
Tate891
Grenada893
Wilkinson889
Itawamba877
Union835
Marshall833
Montgomery831
Sunflower813
Jefferson Davis772
Tippah7311
Panola703
Webster691
Calhoun644
Humphreys607
Amite601
Walthall550
Tunica543
Prentiss523
Perry503
Choctaw432
Jefferson421
Tishomingo320
Pontotoc323
Stone300
Franklin282
Tallahatchie271
Quitman260
George251
Alcorn171
Benton150
Greene121
Sharkey70
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 17359

Reported Deaths: 618
CountyConfirmedDeaths
Mobile2191115
Jefferson1780102
Montgomery163238
Tuscaloosa73814
Marshall6879
Franklin5457
Lee54033
Shelby50319
Tallapoosa42364
Butler40217
Chambers35325
Walker3442
Elmore3398
Madison3274
Baldwin2839
Dallas2603
Morgan2511
Etowah24811
DeKalb2433
Lowndes23812
Coffee2291
Sumter2206
Autauga2164
Houston2094
Bullock2034
Pike1980
Colbert1782
Russell1670
Marengo1636
Lauderdale1612
Hale1598
Calhoun1543
Choctaw1518
Barbour1501
Wilcox1447
Clarke1422
Cullman1260
Randolph1257
Marion12111
St. Clair1181
Pickens1114
Dale1100
Talladega1093
Chilton1001
Limestone940
Greene944
Winston880
Covington771
Jackson772
Crenshaw763
Macon754
Henry742
Bibb721
Washington686
Blount611
Escambia573
Lawrence480
Geneva400
Conecuh391
Coosa381
Monroe372
Perry370
Cherokee373
Clay272
Lamar230
Fayette150
Cleburne141
Unassigned00
Tupelo
Clear
79° wxIcon
Hi: 83° Lo: 59°
Feels Like: 80°
Columbus
Clear
81° wxIcon
Hi: 84° Lo: 59°
Feels Like: 82°
Oxford
Clear
77° wxIcon
Hi: 81° Lo: 57°
Feels Like: 78°
Starkville
Clear
79° wxIcon
Hi: 82° Lo: 55°
Feels Like: 79°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather