The first trading day in May could kick with several records for US stock indices, thanks to Apple, who pulled another rabbit out of the revenue hatch on Tuesday.
Of course, it remains to be seen whether the Federal Reserve can avoid destroying the mood when the central bank gives a political message later, with a press conference by chairman Jerome Powell in the spotlight.
Read: The case for the Fed to keep an interest rate increase on the table is about financial stability
"Markets are convinced that the Fed has its back, but while precautions apply to US central banks it may be difficult to say something that will uncover the enthusiasm of stock investors, says Chris Beauchamp, market analyst at IG, to customers.
But now, enthusiasm is all about Apple
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that can regain its status as a $ 1
Read: Apple is optimistic and it's not because of the iPhone
It brings us to our call of the day from the founder of the venture capital company Loup Ventures, Gene Munster, who warns investors against underestimating Apple's ability to bring forth future earnings success.
"This story can be a $ 350 share over the next couple of years, and I think they're going to surprise people on this earnings effect," he told CNBC late Tuesday. Doubt what Apple could deliver has been partly due to the dark image of the smartphones' demand painted by some rivals.
Apple shares closed Tuesday at $ 200.67 per share and were up over 5% in premarket activity.
] Munster liked Apple's encouraging comments on China's demand, with CEO Tim Cook, declaring that the last few weeks in the December quarter looked like a "trough" for that country. Among other major pluses, the analyst told news of a 5% dividend lift and $ 75 billion in stock repurchase.
A long-term leader, Apple, who spent 21 years at the Piper Jaffray research house, said these buybacks alone could mean 25% jump in stocks over the next five years. "Investors are largely under-appreciating what this stock can do," he said.
One day ahead of these revenues, Munster and his colleague Will Thompson suggested that Apple would be the best execution of the FAANG stock in 2019. The acronym, given to some of the stock's biggest technological names, stands for Facebook, Apple, Amazon
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and Alphabet (owner of Google).
Apple has made its share of the promise in tech-rebound that has led to the overall stock market this year. Its shares are up 27% so far this year, less than Facebook and Netflix, but surpassed the Google parent alphabet
whose stock tumbled 7.5% on Tuesday, their biggest drop since 2012, following a surprising revenue mission.
Not everyone is as bullish as Munster. Michael Hewson, market analyst at CMC Markets, said he reserved the verdict on whether Apple could be a driver of stock market records. "I still think Apple is facing challenges by preventing iPhone sales from falling with rising services," he said in email comments.
Slow hardware sales have also worried him. "The iPhone is an expensive kit and at $ 1000 + a pop, you have to sell many services to compensate for a sharp decline in hardware sales," he said.
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S & P
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is out for a firmer start, with some potential fresh records in production. Read more in Market Snapshot.
is stable while gold
Holidays across Europe and Asia kept markets quiet. FTSE 100
trudged together while New Zealand shares