US stocks rise; Apple falls after launching 2 iPhones
In this Tuesday, Sept. 3, 2013, file photo, traders work on the floor at the New York Stock Exchange in New York. US stocks rose Tuesday on better Chinese economic data and easing concerns about Syria, despite a fall in Apple shares following the launch of two new iPhones. AP
NEW YORK CITY—US stocks rose 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 percent) to 15,191.06.
The broad-based S&P 500 increased 12.28 (0.73 percent) to 1,683.99, while the tech-rich Nasdaq Composite Index put on 22.84 (0.62 percent) 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 percent 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.
Article continues after this advertisementSome 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.”
Article continues after this advertisementMeanwhile, 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 percent, Nike jumped 2.2 percent and Visa increased 3.4 percent. Alcoa slipped 0.3 percent, Bank of America gained 0.9 percent and Hewlett-Packard fell 0.4 percent.
Video streaming service Netflix surged 6.4 percent 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 percent after a full-year earnings forecast came in at $7 per share, below the $7.14 seen by analysts.
Bond prices fell. The yield on the 10-year Treasury rose to 2.96 percent from 2.90 percent Monday, while the 30-year increased to 3.89 percent from 3.84 percent. Prices and yields move inversely.
