Apple shares fell as much as 5 percent on Monday ahead of a highly anticipated event on Tuesday when the maker of the Mac, iPod and iPhone is expected to roll out a new iPod Nano and may give an update on iPhone sales.
Stock in the high-flying company often sells off ahead of its major product announcements, said Shannon Cross, an analyst at Cross Research, adding that concerns about the strength of overall consumer spending also weighed on Apple shares.
The Cupertino, California-based company e-mailed reporters and analysts last week with an invitation to a San Francisco event entitled "Let's Rock," which bore an image of an iPod- wearing man jumping in the air, with the words "playing soon."
“I expect a new iPod touch and iPod Nano,” says Piper Jaffrey tech analyst Gene Munster on Fast Money. “It’s going to be all about iPod.
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“Also they’re going to potentially revamp iTunes,” adds Lehman Apple analyst Ben Reitzes.
Also investors want to know about the health of Steve Jobs. Last month unsubstantiated rumors circulated that he wasn’t well. “Is he upbeat, is he there? We’ll be watching that as well,” Reitzes says.
”Since last June investors have been on pins and needles about that,” adds Munster. “We are confident he’s going to look healthy.”
With only a few hours now until Apple's highly anticipated new product launch, how should you trade?
“You’re probably going to see the iPhone become a measurable part of the business,” replies Munster. I think it will be the next catalyst for the stock to move.”
”I think investors should own Apple through years end,” Reitzes adds.
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Trader disclosure: On Sept 8, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (DIS), (WMT), (MSFT) Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MST), (NUE); Najarian Owns (NVO); Najarian Owns (AAPL) And (AAPL) Collar; Najarian Owns (LEH) Put Spread And (LEH) Call Spread; Najarian Owns (MER) Put Spread; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (NOK) And Is Short (NOK) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (XLF) And (XLF) Collar; Finerman Owns (GS); Finerman's Firm And Finerman Own (FLS); Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Owns (HUN) Leaps; Finerman's Firm Owns (MO), (MSFT), (NOK), (SUN), (TSO), (VLO), (GE); Finerman's Firm Is Short (XLF), (IYR), (IJR), (MDY), (SPY), (IWM), (BAC), (COF); Finerman's Firm Is Short (BBT) And Owns (BBT) Puts
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