The Dow and S&P 500 have ended slightly higher after news of a fresh round of US-China trade talks, while the Nasdaq fell following a decline in Apple as it unveiled larger iPhones but made just minor changes to its offerings. The Trump administration has reached out to China for a new round of trade talks as it prepares to activate punitive US tariffs on $US200 billion worth of Chinese goods, according to two people familiar with the matter. Trade-sensitive stocks rose, including Boeing, up 2.4 per cent.
Apple shares were down 1.2 per cent. The company also unveiled health-oriented watches based on the design of current models. “Looks like the Street is yawning at Apple’s new iWatch, iOs12 and iPhone offerings,” said Daniel Morgan, vice president and senior portfolio manager at Synovus Trust Company in Atlanta on Wednesday. “This adds to the concerns on tariffs, social media testimony and chips to make it a tough day for tech.” Shares of fitness device rival Fitbit fell 6.9 while shares of Garmin lost some earlier gains and were flat after the launch of Apple’s latest Apple Watch.
The S&P technology index was down 0.5 per cent, reversing Tuesday’s gains, with fears of further deregulation also hurting Apple as well as social media names. The Dow Jones Industrial Average on Wednesday rose 27.86 points, or 0.11 per cent, to 25,998.92, the S&P 500 gained 1.03 points, or 0.04 per cent, to 2,888.92 and the Nasdaq Composite dropped 18.25 points, or 0.23 per cent, to 7,954.23.
Morning Market Note - Thursday 13th September