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Apple Approaches $1 Trillion Value as Wall Street Rallies

Apple Approaches $1 Trillion Value as Wall Street Rallies
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Thursday, 10 May 2018 05:37 PM

Apple Inc. inched closer to a $1 trillion stock market value, as stocks rallied on Wall Street amid tepid inflation data eased worries of faster U.S. interest rate hikes this year.

Fueled by a $100 billion buyback plan unveiled last week, shares of Apple (AAPL) rose 1.43 percent to a record high close of $190.04, lifting the S&P 500 more than any other stock.

The iPhone maker is about 7 percent away from becoming the first company ever to have a market capitalization of $1 trillion.

The U.S. Labor Department's consumer price index increased 0.2 percent in April, less than economists' expectations, as rising costs for gasoline and rental accommodation were tempered by a moderation in healthcare prices.

Core CPI, which excludes food and energy components, edged up 0.1 percent in April, slower than the previous two months, and did little to alter traders' expectations of a June rate hike.

A higher inflation number could have increased fears of more aggressive interest rate hikes by the U.S. Federal Reserve.

"The CPI came in at a level where it's not so alarming as far as what the Fed is thinking," said Mark Kepner, an equity trader at Themis Trading in Chatham, New Jersey. "There's comfort that the Fed won't have to move too quickly."

The U.S. stock market rallied broadly, with all 11 major S&P sectors posting gains.

With investors setting aside concerns about a trade war with China, the S&P 500 has risen 3.55 percent in the past week, its strongest five-session showing since February. The S&P 500 reclaimed its 100-day moving average for the first time since April 19, suggesting to some traders that the market may move higher.

The Dow Jones Industrial Average rallied 0.8 percent to end at 24,739.53 points, while the S&P 500 gained 0.94 percent to 2,723.07, its highest level since mid-March.

The Nasdaq Composite added 0.89 percent to 7,404.98.

CenturyLink gained 7.54 percent after its first-quarter report. That helped the telecoms sector jump 1.9 percent, more than any other sector.

AXA Equitable Holdings, the U.S. division of French insurer AXA, rose 1.7 percent in its market debut. Although its offering raised less than targeted, it was still the biggest U.S. IPO this year.

The top losers on the S&P 500 included Victoria's Secret owner L Brands, which fell 7.15 percent, and Booking Holdings, formerly called Priceline, which dropped 4.74 percent. Both companies gave disappointing outlooks.

Advancing issues outnumbered declining ones on the NYSE by a 2.57-to-1 ratio; on Nasdaq, a 1.65-to-1 ratio favored advancers.

The S&P 500 posted 37 new 52-week highs and two new lows; the Nasdaq Composite recorded 165 new highs and 36 new lows.

Volume on U.S. exchanges was 6.7 billion shares, compared with the 6.6 billion-share average over the last 20 trading days. 

Meanwhile, Goldman Sachs and Apple are preparing to launch a joint credit card as early as next year, the Wall Street Journal reported.

Apple will replace its rewards-card partnership with Barclays, the WSJ.com report added.

The iPhone maker will replace its longstanding rewards-card partnership with Barclays, the report added.

Goldman Sachs (GS), Apple and Barclays all declined comment.

The news comes as Apple sharpens its focus on its services business that includes the App Store, mobile payments and music streaming. The unit’s revenue grew 31 percent to more than $9 billion in the three months ended March 31.

Goldman has been looking to expand its consumer banking business to offset weakness at its trading unit. Last year, the Wall Street bank’s executives laid out a goal to generate $5 billion in revenue from new sources, including consumer banking.

In February, the Wall Street Journal reported that Apple was in talks with Goldman to offer financing to shoppers buying Apple products, including iPhones.

Also Thursday, Apple ditched plans to build an 850 million euro ($1 billion) data center in Ireland because of delays in the approval process that have stalled the project for more than three years, the iPhone maker said on Thursday.

Apple announced plans in February 2015 to build the facility in the rural western town of Athenry to take advantage of green energy sources nearby, but a series of planning appeals, chiefly from two individuals, delayed its approval.

Ireland's High Court ruled in October that the data center could proceed, dismissing the appellants who then took their case to the country's Supreme Court.

© 2019 Thomson/Reuters. All rights reserved.

   
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Apple Inc. inched closer to a $1 trillion stock market value, as stocks rallied on Wall Street amid tepid inflation data eased worries of faster U.S. interest rate hikes this year.
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2018-37-10
Thursday, 10 May 2018 05:37 PM
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