|Using Kensho technology, CNBC will surface research and analytic insights designed to create actionable, historical content around market moving events.
Apple’s Shining Moment
Apple hit a market cap of $1 trillion in intraday trading on Thursday – the iPhone maker becoming the first publicly traded U.S. company to reach that level. The historic valuation was reached after the tech giant delivered strong EPS and revenue growth for their fiscal third quarter. Since 2010, Apple has topped earnings estimates on 30 other occasions – following those beats, the stock tends to outperform two weeks later – up another 2 percent, beating out both the S&P and Nasdaq Composite.
The Nasdaq’s bounce back?
Speaking of the Nasdaq Composite, it notched a three-day drop earlier this week, shedding 3.86 percent in that period – important to note, it’s the first time the index has dropped by at least 1 percent in three straight sessions since 2015. But history shows these drops precede major moves higher. Since the end of the Financial Crisis in March 2009, the Nasdaq has dropped by at least 1 percent in three consecutive trading days on 5 other occasions:
• August 2015
• December 2014
• October 2014
• December 2011
• January 2010
Following those drops, the index tends to rebound sharply over the next month, gaining over 5 percent and trading positively 100 percent of the time.