Wall Street Rises In Part Because Of Apple And China

Wall Street Rises In Part Because Of Apple And China
CEO Tim Cook presents the new iPhone 11 at an Apple event at their headquarters in Cupertino, California, U.S. September 10, 2019. (Photo: REUTERS/Stephen Lam)

On Wednesday, April 11, US stocks rose, boosting all three most widely followed indexes in the US: Dow Jones Industrial Average, Nasdaq Composite and S&P 500 or the Standard & Poor's 500 Index because of the launch of Apple's latest iPhones and China exempting some goods from tariffs.

Though Apple's phones had been, from time immemorial, known to boost US stocks, the unveiling of its streaming TV service that is a lot cheaper than that of Netflix and Walt Disney capped the sweet deal of a homegrown to the US economy.

Apple's market valuation after these gains took the company above $1 trillion.

Apple's rise also made the technology sector bounce back from the drop it sustained in the previous session resulting in investors moving on to more value-oriented stocks based on growth shares.

However, according to Dow Jones Market Data, the tech giant's stock has a trend of rising an average of 4.6% in the month before the reveal of a new phone but also falls an average of 0.7% in the month following the reveal.

Bringing in its contribution to the good performance of US stocks is China's finance ministry exempting 16 types of US goods that include some animal feed ingredients including lubricants just in time for the meeting with the US regarding trade relations.

Still, doubters are not seeing this move of Beijing as a friendly gesture.

Analysts are not sure how much effect on the global economy this move of China would make.

Ed Egilinsky, head of alternative investments at Direxion said that the goods getting exemptions are staple necessities in the Chinese market.

He stressed the "big difference" between China's move and "actually ironing out a deal."

Outsiders can only assume that the whole US-China tariffs saga always starts with the US wanting the Chinese government to stop giving a leg up to certain industries.

Still, Beijing might be saying to move forward, tariffs have to get removed.

Two nonstarters however way you look at it.

Still, investors are sure that the US Federal Reserve and the European Central Bank will cut interest rates during the next two weeks.

On September 11, at 11:56 a.m. ET, the Dow Jones Industrial Average .DJI was up at 99.22 points, or 0.37%, at 27,008.65, the S&P 500 .Nasdaq Composite .IXIC was up at 61.37 points, or 0.76%, at 8,145.52 and the SPX (Standard & Poor's 500 Index) was up 11.71 points, or 0.39%, at 2,991.10.

Shares of Micron Technology Inc, producer of computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives increased by 2.49% after Longbow Research upgraded its stock to "buy".

General Electric's (GE) Baker Hughes' stocks reacted differently falling 3.63%.

Black Hughes had the most decrease among S&P 500 companies after its parent company looked to sell a majority stake.

Advancing issues outnumbered decliners for a 1.90-to-1 ratio on the NYSE (New York Stock Exchange) and a 2.25-to-1 ratio on the Nasdaq.

The S&P Index had 22 new 52-week highs and no new low, while the Nasdaq had 43 new highs and nine new lows.

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