Whitenack, whereas we have seen damage similar to your apple tree caused by cicadas, I am also going with fireblight. (Particularly if you can see a blackening of the infected twig.) Lodi cultivars are highly susceptible to this bacteria. As Thillmaine said, prune it out. The reference to disinfecting was pertaining to your pruners, not the tree. LOL
Prune approximately 6-8" below the blighted tissue, dispose of infected limbs. We will do this procedure when the disease is least likely to be transmitted.
Orchard owners many times have a zero tolerance for fire blight and will simply remove the tree rather than chance a full scale infestation on a cash crop. however, on an individual tree in your yard, we have had several client's whose trees came back after aggressive removal of infected limbs. Restructing may have to take place in the future. This is probably a problem your tree will experience off and on throughout its life as it is a susceptible cultivar.
Many apples typically have a "blush" at the stem.
Sylvia