Apple hits $1 trillion mark, turns Nasdaq positive

Apple CEO Tim Cook takes a selfie with a customer at the Apple Store in Chicago, Illinois. (Reuters)
Updated 02 August 2018
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Apple hits $1 trillion mark, turns Nasdaq positive

  • Apple hits record high of $207.05 – crowning decade-long rise fueled by its ubiquitous iPhone
  • Apple led rebound in tech stocks helping Wall Street pare losses and turning Nasdaq positive

NEW YORK: Apple became the first US company to top $1 trillion in market value on Thursday, leading a rebound in technology stocks that helped Wall Street pare losses and turned the Nasdaq positive.
Market sentiment was also lifted by Commerce Secretary Wilbur Ross’s comment, who said the tariffs that United States is threatening to impose on Chinese goods would not be disastrous for the Asian nation.
“It’s not something that’s going to be cataclysmic,” he said in an interview with Fox Business Network, explaining that a 25 percent tariff on $200 billion worth of goods would equal to less than 1 percent of China’s economy.
Technology stocks, which were trading lower earlier in the session, rose 0.4 percent.
Apple hit a record high of $207.05, crowning a decade-long rise fueled by its ubiquitous iPhone that transformed it from a niche player in personal computers into a global powerhouse spanning entertainment and communications.
“There’s a dichotomy on whether the tech run is going to continue,” said Cliff Hodge, director of investments for Cornerstone Wealth in Charlotte, North Carolina.
“The tariffs are not enough to derail the US economy that is firing on all cylinders.”
The trade-sensitive industrial sector fell 0.38 percent. Caterpillar, Boeing and 3M fell more than 1 percent and weighed on the bluechip Dow Jones Industrial Average.
Financials fell 0.5 percent, the biggest drag on the S&P 500, as 10-year US Treasury yields eased.
The Federal Reserve kept interest rates unchanged on Wednesday, but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September.
At 11:23 a.m. EDT the Dow Jones Industrial Average was down 120.33 points, or 0.47 percent, at 25,213.49, the S&P 500 was down 1.84 points, or 0.07 percent, at 2,811.52 and the Nasdaq Composite was up 23.95 points, or 0.31 percent, at 7,731.24.
The materials group fell 1.2 percent as prices of copper and other base metals slipped. Eight of the 11 major S&P sectors were lower.
Tesla jumped 9.5 percent after the electric car maker convinced investors that it was able to produce positive cash flow and turn a profit.
DowDuPont fell 3.1 percent after the chemical producer said it expects higher raw material costs to hit all its units for the rest of the year.
Shares of TripAdviser and Cognizant slipped 14.4 percent and 6.8 percent after their earnings failed to impress investors.
Declining issues outnumbered advancers for a 1.01-to-1 ratio on the NYSE. Advancing issues outnumbered decliners for a 1.07-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and five new lows, while the Nasdaq recorded 59 new highs and 65 new lows.


VW to stop doing business in Iran: Bloomberg

Updated 52 min 14 sec ago
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VW to stop doing business in Iran: Bloomberg

  • VW will still be able to do some business in Iran under a humanitarian exception
  • VW has scrapped plans it announced in July last year to sell cars in Iran for the first time in 17 years

WASHINGTON: Volkswagen has bowed to American pressure stemming from the US rejection of the multi-party nuclear deal and will end almost all business in Iran, Bloomberg News reported Wednesday.
The accord was reached Tuesday after weeks of talks between the German auto giant and the administration of President Donald Trump, said Richard Grenell, the US Ambassador to Germany, according to Bloomberg.
VW will still be able to do some business in Iran under a humanitarian exception, Bloomberg added.
In May, Trump pulled the US out of the deal it reached with Iran and five other countries in 2015. That accord lifted sanctions against Tehran in exchange for restrictions on its nuclear program.
Now, the US is reimposing those sanctions.
Bloomberg said VW has scrapped plans it announced in July last year to sell cars in Iran for the first time in 17 years.