Stock Market Rally Rebounds Amid Crocs, Microsoft News, Apple iPhone

The stock market rally tested key support levels this past week, with the S&P 500 rebounding from its 50-day line. Apple (AAPL) debuted its iPhone 13 series and other new products. Crocs (CROX) surged on a bullish outlook, while Microsoft (MSFT) rallied on a huge buyback. On the downside, Macau-focused casinos such as Wynn Resorts (WYNN) plunged as China moved toward big regulatory changes. Economic data was generally positive.

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Stock Market Rally Rebounds

The stock market rally, after sliding somewhat over several sessions, bounced back Wednesday, with the S&P 500 once again finding support at the 50-day moving average. The Nasdaq rebounded from below its 21-day line while the small-cap Russell 2000 rallied near its 200-day line. The major indexes largely held gains Thursday. Meanwhile, many leading stocks flashed buy signals. Energy stocks rose sharply as crude oil and other energy prices ran higher. The new Apple iPhone, a Macau casino crackdown, a bullish forecast by Crocs and a hefty Microsoft stock buyback and dividend were in focus.

Apple Debuts iPhone 13

Apple (AAPL) introduced its second-generation 5G handsets, the iPhone 13 series, at a fall product launch event. The new handsets are incremental upgrades to last year’s iPhone 12 family. The iPhone 13 devices feature brighter displays, faster processors, improved cameras and longer battery life. They will be available starting Sept. 24. Apple also unveiled the Apple Watch Series 7 smartwatch lineup and new iPad tablets. The event was largely free of surprises because of news leaks. Apple stock fell slightly after the prior week’s sharp reversal from all-time highs.

Economic Data Gets Touch Of Covid

Economic data this week was partly infected by the delta variant. The consumer price index rose less than expected in August, as the overall CPI rose 0.3% on the month and the annual rate dipped to 5.3% from 5.4%. The core CPI rose just 0.1% on the month, and the annual rate slipped to 4%, easing further from June’s 29-year-high 4.5%. Softer core inflation partly reflected a Covid comedown in travel. Airfares fell 9.1% in August, while prices for lodging away from home fell 2.9%.

Retail sales showed strength, unexpectedly rising 0.7% overall and 1.8% excluding autos. The data had a splash of Covid, as categories that soared early in the pandemic led the way: Sales rose 5.3% at nonstore retailers, 2.1% at grocery stores and 3.5% at general merchandise stores. Meanwhile, restaurant and bar sales were flat on the month and auto sales fell 3.6% amid ongoing chip shortage woes.

Initial jobless claims rose 20,000, to 332,000, but September manufacturing reports from Philadelphia and New York were much stronger than expected.

Data also looked a little sick in China, where August retail sales rose 2.5% vs. a year earlier, far below views and July’s 8.5%. Industrial production cooled to a 5.3% annual gain.

Crocs Jumps On Outlook, Buyback

At an investor day, Crocs said it’s targeting more…