Apple Falls Flat: Tuesday’s IP Market Recap

by Marc Bastow | September 10, 2013 4:57 pm

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[1]), Goldman Sachs (GS[2]) and Nike (NKE[3]) will join the index, replacing Alcoa (AA[4]), Bank of America (BAC[5]),  and Hewlett-Packard (HPQ[6]). 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[7]) much-awaited unveiling of its iPhone 5S and 5C[8], and its newest iOS — 7 — was met with broad disappointment on the stock side, with AAPL down nearly 3%.

Netflix (NFLX[9]) 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[10]) United Kingdom cable system.

Microsoft (MSFT[11]) shares headed 2% higher as speculation on a replacement for outgoing CEO Steve Ballmer centers on Ford’s (F[12]) Alan Mulally and Computer Sciences (CSC[13]) Mike Lawrie — both noted turnaround specialists.

Retailer JCPenney (JCP[14]) lost over 2% after coffee-press maker Bodum Group announced it would sue[15] 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[16]), 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[17]): Up 22.4% ($6.69) to $36.58.
• Tuesday Morning (TUES[18]): Up 9.7% ($1.23) to $13.94.
• Sears Holding (SHLD[19]): up 6.7% ($3.57) to $56.64. (Read more[20])

Three Down

• Myriad Genetics (MYGN[21]): Down 6.8% ($1.97) to $26.85.
• Goldcorp (GG[22]): Down 6.4% ($1.87) to $27.24.
• Blackberry (BBRY[23]): 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.

Source URL: https://investorplace.com/2013/09/tuesday-market-recap-apple-falls-flat/

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