US stocks extend upswing on Apple bounce
NEW YORK –US stocks pushed higher Monday on news that Apple plans a huge dividend and share buyback program and delivery giant UPS is buying European rival TNT.
The Dow Jones Industrial Average inched up 6.51 points (0.05 percent) to finish the session at 13,239.13, below its Thursday peak.
But the other two indices climbed to fresh multi-year highs. The broad-market S&P 500 rose 5.58 points (0.40 percent) to 1,409.75, while the tech-heavy Nasdaq Composite was the strongest riser, gaining 23.07 points (0.75 percent) to 3,078.32.
The major indices extended last week’s solid gains, buoyed by Apple’s shock announcement that it would tap its $98 billion cash stockpile to pay its first quarterly dividend since 1995 — $2.65 per share — and begin a $10 billion share repurchase program.
In all, the company plans to return $45 billion to its shareholders over the next three years.
Apple chief executive Tim Cook said the latest iPad computer tablet had “a record weekend” after its launch Friday. After the market closed, Apple announced it sold three million of the new models.
Shares of Apple, the world’s largest company by market capitalization, finished 2.7 percent higher at a record $601.10 a share, closing above the $600 line for the first time.
United Parcel Service added to the upward momentum after confirming its deal to pay 5.16 billion euros ($6.77 billion) for Dutch firm TNT Express, which builds UPS’s position in the European and global express delivery market. UPS shares jumped 3.4 percent to $81.11.
“Although Apple was a strong performer following news of its dividend and share repurchase plan, financials were the primary drivers behind the broad market’s move to a new multi-year high,” Briefing.com analysts said.
On the Dow, JPMorgan Chase rose 1.0 percent but Bank of America led the decliners, tumbling 2.8 percent after sharp gains the prior week.
Citigroup advanced 1.3 percent; Wells Fargo and Goldman Sachs were both up 1.1 percent.
Bond prices fell. The yield on the 10-year Treasury edged up to 2.38 percent from 2.30 percent Friday, while the 30-year rose to 3.48 percent from 3.41 percent.
Bond prices and yields move in opposite directions.
