US stocks rise; Apple falls after launching 2 iPhones

  • AFP, New York City, New York
  • |
  • Updated: Sep 11, 2013 12:15 IST
  • Apple

    People arrive for the Apple product announcement at the Apple campus in Cupertino, California. (AFP Photo)

  • Tim Cook

    Apple CEO Tim Cook speaks on stage before the new product introduction in Cupertino, California. (AP Photo)

  • Apple

    Screenshots of the iOS7 seen on screen during Apple Inc's media event in Cupertino, California. (Reuters Photo)

  • iPhone 5C

    The five colors of the new iPhone 5C and the new cases for the phone, seen at Apple Inc's media event. (Reuters Photo)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide product marketing, speaks on stage during the introduction of the new iPhone 5c. (AP Photo)

  • Phil Schiller

    Phil Schiller talks about the new iPhone 5S camera at Apple Inc's media event in Cupertino, California. (Reuters Photo)

  • Craig Federighi

    Craig Federighi, senior vice president of Software Engineering at Apple, speaks during the new product release in Cupertino, California. (AP Photo)

  • Phil Schiller

    Phil Schiller speaks on stage at Apple Inc's media event. (Reuters Photo)

  • Phil Schiller

    Phil Schiller talks about the camera in the new iPhone 5S during Apple Inc's media event. (Reuters Photo)

  • iPhone 5S

    The exploded view of the home button which doubles as a fingerprint sensor, seen on an image of the new iPhone 5S at Apple Inc's ...

US stocks rose on Tuesday on better Chinese economic data and easing concerns about Syria, despite a fall in Apple shares following the launch of two new iPhones.

The Dow Jones Industrial Average jumped 127.94 (0.85%) to 15,191.06.

The broad-based S&P 500 increased 12.28 (0.73%) to 1,683.99, while the tech-rich Nasdaq Composite Index put on 22.84 (0.62%) at 3,729.02.

Technology icon Apple, the largest US company by market capitalization, suffered one of the biggest declines among large companies, falling 2.3% after chief executive Tim Cook and other top officials unveiled two new iPhones.

READ: Apple unveils iPhone 5C, iPhone 5S

Apple fielded a top-line iPhone 5S and a lower-cost iPhone 5C aimed at competing with rival low-cost smartphones, most of which use Google's Android operating system.

Some analysts expressed disappointment with the launch. Bank of America said the smartphones would have difficulty competing in the lower-end market "unless Apple is willing to give up subsidy/margin, which it doesn't typically do."

Meanwhile, the broader market surged to a second straight day of solid gains.

China's industrial production rose in August at its fastest rate in 17 months, according to official data providing further evidence of a pick-up in the world's second-largest economy.

Tuesday's gains came as investors continued to hope that a proposal by Russia to place Syria's chemical weapons under international control could avert a US military strike.

The operator of the Dow index, S&P Dow Jones Indices, announced it would drop Alcoa, Bank of America and Hewlett-Packard from the 30-stock blue-chip index on September 23, replacing them with Goldman Sachs, Nike and Visa.

The Dow cited the low stock values of the companies that were dropped and a "desire to diversify the sector and industry group representation of the index."

Goldman Sachs rose 3.5%, Nike jumped 2.2% and Visa increased 3.4%. Alcoa slipped 0.3%, Bank of America gained 0.9% and Hewlett-Packard fell 0.4%.

Video streaming service Netflix surged 6.4% following a deal with British cable operator Virgin Media to make the service available to subscribers. A Citi note said the news marked the first time Netflix has been integrated into a pay-TV offering.

Apparel maker PVH, which owns the Tommy Hilfiger and Calvin Klein brands, dropped 5.6% after a full-year earnings forecast came in at $7.00 per share, below the $7.14 seen by analysts.

Bond prices fell. The yield on the 10-year Treasury rose to 2.96% from 2.90% Monday, while the 30-year increased to 3.89% from 3.84%. Prices and yields move inversely.


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