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AAPL down nearly 6%: downgraded by big financial companies after yesterday’s event


After yesterday’s iPhone event, major financial firms downgraded AAPL which has resulted in a ~6% drop for AAPL this morning. As reported by ValueWalk, JPMorgan Chase & Co, Credit Suisse Group AG, Bank of America, and UBS AG downgraded the tech company yesterday.

For Credit Suisse, AAPL is now considered “neutral”, down from “outperform.” Many of the analysts and financial firms were expecting the iPhone 5c to be an inexpensive model for China and other markets where phones go unsubsidized by carriers. However, the iPhone 5c was announced to be only $100 less than the flagship iPhone 5s.

Two days ago, we posted Fortune’s stock price chart that showed AAPL investors, by “conventional wisdom … buy the rumor and sell the news, but the series of stock charts … suggest the opposite.” However, yesterday’s downgrades and the resulting drop in AAPL stock price seem to abide by the conventional wisdom, as Apple never publicly announced that the iPhone 5c was going to be a low-cost or rather inexpensive model for the emerging markets, yet investors are disappointed by the company’s inability to match the rumor mill.

President Obama calls Apple CEO Tim Cook and other CEOs to discuss fiscal cliff and economic growth

CNN reported a White House official confirmed President Barack Obama spoke with CEOs of four Fortune 500 companies over the weekend to “discuss the so-called fiscal cliff and economic growth.” The discussions with the select group of CEOs follow a larger meeting of a dozen American companies at the White House last week. One of the four CEOs invited to join the discussions was Apple’s Tim Cook.

According to the White House, the conversations were part of the President’s “outreach on the need to find a balanced deficit-reduction solution that protects the middle class and continues to move our economy forward.”

The official said Obama spoke with the CEOs of four Fortune 500 companies over the weekend after gathering a dozen CEOs of other major American companies at the White House on Wednesday

The other CEOs included in the discussions were Jamie Dimon of JPMorgan Chase, Costco’s Craig Jelinek, and Jim McNerney of Boeing.