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THE BOTTOM LINE: New record highs for stocks and a deep dive into Apple's iPhone



This week:

  • The Dow Jones Industrial Average just broke the 22,000 level for the first time ever this week, but there’s a mounting debate about whether the market is too expensive for its own good. Business Insider CEO Henry Blodget discusses the signs of over-exuberance in the market right now and looks at how extended valuation levels are relative to history.
  • Apple reported better-than-expected earnings this week, and the stock responded in a positive fashion. All eyes are on the launch of the newly-redesigned iPhone, and guidance provided by the company suggested that it will be released at the end of September. That helped push the stock to a new record high, and now discussions are now occurring over whether Apple can achieve a market cap of $US1 trillion.
  • Jim Glassman, the managing director and head economist for commercial banking at JPMorgan, previews Friday’s job report. He said he’s more interested in the jobless claims number, as opposed to monthly non-farm payrolls, because they give a better indication of economic trends. Glassman sees the US as fairly close to reaching full employment, citing “steady, solid gains.” He then goes on to discuss the skills gap in the labour market and talks about how innovation is changing the job market. Glassman also thinks that concerns over an overly expensive market are overblown, and says that it’s priced for the future.
  • Sonu Kalra, a portfolio manager with Fidelity’s Blue Chip Growth Fund, spoke to Henry Blodget about Apple, and whether the company’s stock can hit $US200 a share. He thinks it will boil down to whether the new iPhone will be innovative or not, and whether it will be enough to convince people to pay a higher price. Kalra says that, at some point in the next 5-10, Apple will need to look for new products, it’s not quite so reliant on the iPhone. He also talks about Tesla, and how his first time test driving one of their cars was an “iPhone moment” for him. Lastly, Kalra discusses how Tesla’s new Model 3 could take a considerable chunk of market share, and talks about how the company can become profitable over time.

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