US stocks rise; Apple falls after launching 2 iPhones
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. Apple unveils iPhone 5C, iPhone 5Sbusiness Updated: Sep 11, 2013 12:15 IST
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.
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.
First Published: Sep 11, 2013 08:09 IST