Wall Street loses oomph but Apple crosses $800-billion mark

Rajalakshmi S Updated - January 11, 2018 at 07:39 PM.

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The S&P 500 fell on Tuesday after edging up to an intra-day record high for the second straight session, while Apple became the first US company to close with a market capitalisation above $800 billion.

Better-than-expected quarterly earnings from US companies and Emmanuel Macron's victory in the French presidential election on Sunday have given investors confidence, but valuations for US stocks are already higher than average.

The hope that US President Donald Trump will cut corporate and personal taxes remained in focus for investors.

“Earnings are improving and the potential for tax reform plays a big role. Why would you want to sell stocks here when you might get a tax break later on?” said Bruce Bittles, chief investment strategist for Robert W. Baird & Co.

Apple rose 0.64 per cent to end at $153.99, giving it a market valuation of $802.9 billion, a first for a US company. Investors are optimistic the Cupertino, California company will mark the 10th anniversary of the iPhone by launching a model with suped-up features.

“It's a real testament to what they've accomplished,” said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey. However, he said Apple's massive size could hamper it's ability to keep growing.

The Dow Jones Industrial Average declined 0.17 per cent to end at 20,975.78 points and the S&P 500 lost 0.10 per cent to 2,396.92 points.

The Nasdaq Composite added 0.29 per cent to close at a record high of 6,120.59, helped by Apple.

After the bell, videogame maker Electronic Arts jumped 3.9 per cent following its fiscal fourth-quarter report.

Four of the 11 major S&P sectors rose during Tuesday's session, led by consumer discretionary, while the typically defensive plays such as utilities and telecom services fell.

Energy dropped 0.86 per cent on the back of falling oil prices.

Shares of Valeant Pharmaceuticals jumped 24 per cent after the company posted its first profit in six quarters.

Sturm Ruger & Company jumped 9.85 per cent, leading other gun makers higher after its quarterly report suggested a drop in demand after Trump's election may be bottoming out.

Endo International, Office Depot and Marriott also rose after reporting better-than-expected quarterly earnings.

Wayfair surged 20.73 per cent to an all-time high after the online furniture retailer revenue beat analysts' expectations.

Declining issues outnumbered advancing ones on the NYSE by a 1.31-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favoured advancers.

The S&P 500 posted 42 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 120 new highs and 59 new lows.

About 6.7 billion shares changed hands on US exchanges, in line with the daily average over the last 20 sessions.

Published on May 10, 2017 03:51