You can do absolutely anything on your smartphone!

Stocks had a mixed close in a chaotic day of trade with plenty of central bank, hawkish talk. Chip makers got kicked around as Washington contemplated a fight with China, but potential global demand spurred by AI softened the blows.

The new, new thing. Can you remember where you were on this day in 2007? I certainly can. I was on a long line outside an Apple store with a colleague of mine. We stood patiently in a suburban mall as curious folks walked by chewing on their Auntie Anne’s pretzel bites. Most passersby were chatting on flip phones, while some of the younger ones had those funny looking white earbuds in listening to their iPod. Though it was becoming rarer, that very same mall even had a store that sold music CDs and movies on DVD.

At the time, Apple sold shiny metal laptops and super expensive PCs that were typically the fare of creatives and educators. They were expensive, cool, and very powerful, making them somewhat of a niche product. They also introduced the iPod several years prior which was also beginning to become more mainstream. Apple followed the iPod with a touchscreen version which was a great, but expensive holiday gift for kids and grandkids. Apple was known for its maverick tactics and gained a cult following due to its topnotch engineering and disciplined marketing. I could have ended this note right here with “and that’s it, have a nice day”… but, alas, I cannot.

On this day in 2007 Apple began selling its first iPhone. Yes, it was not just an iPod touch, it was also… a phone!  “Come on,” thought many, “what did Apple know about mobile phones?” Phones were the stuff of Nokia, Blackberry, and Motorola, and who would even consider paying $499 just to carry around an expensive phone which allowed you to listen to music? Who, indeed. And get a load of that price!

Well, as they say on broadcast TV (also vastly changed since 2007), the rest is history. But it is more than just… history. Today, Apple is the most highly valued US stock, worth just under $3 trillion, which is due, in large part to its success with the iPhone. Today, one would have to wait on a long line to get their hands on a simple flip phone which has become rare… and is, strangely, making a comeback. Today, the current version of the iPhone… the iPhone 14 is all the rage, and far pricier than its original antecedent. Today, that once newfangled, curious, shiny toy, is called a smart phone, in part because it is… um smart. The market is dominated by Apple and Samsung which offers a similar in design and functionality alternative. Most people would not even gander a dream of what life would be like without a smartphone. It has become a productivity tool, which, many would argue, has driven economic expansion in the years since its introduction. Think about how many businesses are run on smartphones alone. Entire production quality movies have been filmed using smartphones. Really, if your eyes are good enough and your thumbs nimble enough, you could create spread sheets, documents, presentations… you name it, you could do almost anything you would do on a computer with a smartphone. AND IT FITS IN YOUR POCKET! Imagine how much more productive we have all become since that fateful day in 2007. Speaking of being productive, on this very day, TODAY, Siebert launched its Faye mobile trading app. It is available here in the Apple App Store and here in Google Play.

At this point, I am sure that I don’t have to tell you about how important smart phones have been, are, and will continue to be for the global economy. Even if you are a neo-Luddite (that is actually a word, trust me), you can’t ignore the impact of the technology. For the record, Apple’s stock has appreciated by +4,298.32% since the iPhones launch in 2007!! Wondering what the next smartphone will be? Will it be AI? Only time will tell, but make sure you do your homework before you decide to pass by the getting-bigger-by-the minute queue on the way to the mall food court… oh wait, you don’t have to go to the food court, you could just order food to be delivered from your smartphone.

STOCKS ON THE MOVE THIS MORNING

Micron Technology Inc (MU) shares are higher by +3.98% this morning after the company announced a strong EPS and Revenue beat for last quarter. The company also provided upbeat guidance on the current quarter stating that it believed that “… the memory industry has passed its trough in revenue.” That would be good news for hardware manufacturers and chip producers, but Micron did caution that the recent CAC decision to combat China would be a headwind. Dividend yield: +0.68%. Potential average analyst target upside: +11.7%.

Netflix Inc (NFLX) shares are higher by +1.71% in the premarket after Citi raised its price target for the stock. The analyst cited success in its recent launch of an ad-supported subscription tier which has garnered an additional +82 million subscribers. Netflix will announce its earnings on July 19^th. Potential average analyst target upside: -5.4%. WHY IS THIS NUMBER NEGATIVE? Because the stock is currently trading higher than median average price targets of analysts. While that can be interpreted as the stock being overpriced, it does not mean that the stock will not continue to climb as analysts potentially raise price targets.

YESTERDAY’S MARKETS

Stocks had a mixed close after being bounced around by Chairman Powell and his central bank colleagues from around the globe. The S&P500 slipped by -0.04%, the Dow Jones Industrial Average declined by -0.22%, the Nasdaq Composite Index climbed by +0.27%, and the Russell 2000 Index advanced by +0.49%. Bonds gained and 10-year Treasury Note yields declined by -5 basis points to 3.70%. Cryptos fell by -3.64% and Bitcoin dropped by -1.80%. The S&P ESG Index slipped by -0.01%.

NEXT UP

• Annualized quarterly GDP (Q1) is expected to have improved to +1.4% from its prior estimate of +1.3%.
• Initial Jobless Claims (June 24) is expected to come in at 265k compared to last week’s 264k claims.
• Pending Home Sales (May) may have slipped by -0.5% after remaining flat in the prior period.
• Fed speakers: Chairman Powell and Raphael Bostic.