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Apple Falls Flat: Tuesday’s IP Market Recap

Rally continues on encouraging news from China and Syria

   

IPMarketRecap Apple Falls Flat: Tuesday's IP Market Recap Markets survived what turned out to be a big yawn in Cupertino, Calif., on Tuesday, and instead focused on continued good news from China and the possibility of a military-free resolution to the Syrian crises.

Chinese industrial output rose a solid 10.4% in August, and Russian overtures to force Syria to surrender its chemical weapons defused concerns over U.S. military strikes, paving the way for the rally. The end result was a sixth straight day of gains across all three major indices.

Leading the way was the Dow Jones Industrial Average which registered its second straight day of triple-digit gains, rising 0.85% to 15,191.06. The Dow also announced a retooling — as of Sept. 23, Visa (V), Goldman Sachs (GS) and Nike (NKE) will join the index, replacing Alcoa (AA), Bank of America (BAC),  and Hewlett-Packard (HPQ). All three new entrants got a bump on the day, with GS and V ahead over 3%, and NKE up over 2%.

Meanwhile, the S&P 500 advanced for a sixth straight day, closing higher by 0.73% at 1683.99, and the the Nasdaq ended higher by 0.62% to close at 3729.02.

Apple’s (AAPL) much-awaited unveiling of its iPhone 5S and 5C, and its newest iOS — 7 — was met with broad disappointment on the stock side, with AAPL down nearly 3%.

Netflix (NFLX) soared more than 6% to vault the $300 mark and finish at a record high after RBC Capital raised its target price on the stock to $330 per share with an “outperform” rating. The company also announced its content is now available on Virgin Media’s (VMED) United Kingdom cable system.

Microsoft (MSFT) shares headed 2% higher as speculation on a replacement for outgoing CEO Steve Ballmer centers on Ford’s (F) Alan Mulally and Computer Sciences (CSC) Mike Lawrie — both noted turnaround specialists.

Retailer JCPenney (JCP) lost over 2% after coffee-press maker Bodum Group announced it would sue JCP for allegedly reneging on a contract to offer Bodum’s products as part of its now-defunct “store-within-a-store” concept.

Joining JCP in retail losses was Urban Outfitters (URBN), which fell more than 10% after announcing that same-store sales would come in shy of analyst expectations. Meanwhile, Janney Montgomery dropped its target price on URBN shares from $52 to $46 per share.

Three Up

  • SolarCity (SCTY): Up 22.4% ($6.69) to $36.58.
  • Tuesday Morning (TUES): Up 9.7% ($1.23) to $13.94.
  • Sears Holding (SHLD): up 6.7% ($3.57) to $56.64. (Read more)

Three Down

  • Myriad Genetics (MYGN): Down 6.8% ($1.97) to $26.85.
  • Goldcorp (GG): Down 6.4% ($1.87) to $27.24.
  • Blackberry (BBRY): Down 5.1% (59 cents) to $10.94.

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long AAPL and MSFT.


Article printed from InvestorPlace Media, http://investorplace.com/2013/09/tuesday-market-recap-apple-falls-flat/.

©2014 InvestorPlace Media, LLC

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