Closing Bell: Stock Markets Rise Despite Apple's Downward Pull

new york stock exchange traders apple iphone investing
Richard Drew/AP
U.S. stock markets mostly rose Wednesday, but were weighed down by shares of Apple, which threatened to put an end to a six-day run of gains for the S&P 500 and pushed the Nasdaq into slightly negative territory.

The Dow Jones industrial average (^DJI) rose 135 points, or 0.9 percent, to 15,326, the Standard & Poor's 500 index (^GPSC) nudged up 5 points, or 0.3 percent, to 1,689, but the Nasdaq composite index (^IXIC) slipped 4 points, or 0.1 percent, to 3,725.

Apple (AAPL) shares slumped 5.6 percent to $467.15, their steepest drop since April, and registered the biggest drag on both the S&P 500 and Nasdaq 100 indexes. Credit Suisse, UBS and Bank of America-Merrill Lynch each lowered their ratings on the stock to "neutral" after the company unveiled new iPhone models Tuesday.

Verizon Communications (VZ) sold a record-setting $49 billion in bonds to help fund its $130 billion acquisition of Vodafone Group's (VOD) stake in Verizon Wireless. A 30-year bond was priced to yield 6.559 percent, and a 10-year bond was priced to yield 5.192 percent, levels that were in line with investor expectations, The Wall Street Journal reported. The telecom giant also sold bonds that mature in three, five, seven and 20 years. Verizon shares rose 4 cents to $46.51.

In economic news, newly released data from the Commerce Department showed wholesale inventories for July edged up 0.1 percent, less than an expected rise of 0.3 percent, but better than June's 0.2 percent decline.

Investors looked ahead to the Fed's two-day policy meeting on Sept. 17 and 18, when a decision is expected on whether the central bank will begin to wind down the $85 billion a month in bond purchases it has been making to stimulate U.S. economic growth. The stimulus has been key in buoying the economy and boosting the benchmark S&P 500 index by nearly 18 percent so far this year.

Benchmark U.S. crude oil prices rose 17 cents to $107.56 after two days of declines, though fears of an immediate U.S.-led attack on Syria continued to fade.

Traders on the floor of the New York Stock Exchange observed a moment of silence shortly before trading began on the 12th anniversary of the Sept. 11 terrorist attacks.

More Stocks in the News:
  • Restoration Hardware (RH) fell almost 12 percent to $67 after reporting second-quarter sales that weren't as strong as the first quarter.
  • Walt Disney (DIS) rose 1.7 percent to $63.90 after the company said it would delay its fifth "Pirates of the Caribbean" movie from a planned 2015 opening. Studios struggled with big-budget flops this summer, including Disney's "The Lone Ranger," and investors may be glad to hear that the House of Mouse plans to take its time with the "Pirates" sequel.
  • IBM (IBM) rose 2.2 percent to $190.64 after it said it would sell a customer care outsourcing business to Synnex for $505 million in cash and stock. Synnex (SNX) leaped 20 percent to $57.60.
  • Standard & Poor's lowered Dell's (DELL) corporate credit, citing the continued effects of the slump in PC demand and the possibility that the company could soon go private. Despite that, the stock ended the day absolutely flat, at $13.85.
  • Texas Instruments (TXN) edged down 0.7 percent to $40.03 after the No. 3 U.S. chipmaker lowered its third-quarter forecast.
  • Harvest Natural Resources (HNR) surged more than 26 percent to $5.25 after the oil and gas producer said it was in exclusive talks to sell itself to Argentina's Pluspetrol in a deal valued at about $373 million including debt.
  • International Paper (IP) is laying off 1,100 people who work at an Alabama paper mill that it plans to close permanently because of waning demand for the paper the facility makes. The Memphis, Tenn.-based company employs 70,000 workers in all. The stock rose 0.2 percent to $49.36 in Wednesday trading.
What to Watch Thursday:
  • At 8:30 a.m. Eastern time, the Labor Department releases weekly jobless claims, and import and export prices for August.
  • Treasury releases the U.S. budget balance for August at 2 p.m.
These major companies are scheduled to report quarterly corporate earnings:
  • Kroger Co. (KR)
  • Lululemon Athletica (LULU)
-Compiled from staff and wire reports.

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Thank you president Obama!!!!!

September 12 2013 at 4:22 AM Report abuse rate up rate down Reply

What you can't get your portfolio thru the eye of a needle? Don't worry you won't need it were your going!

September 12 2013 at 12:55 AM Report abuse rate up rate down Reply

Great stock market and technology. I want you to be our food stamp partner!

September 12 2013 at 12:51 AM Report abuse rate up rate down Reply

Hey lets make the electronics smaller so we need a microscope to see the new products!

The Iphone generation fancy technology and part time low age jobs. I wonder if they can bring their Iphones to the front line after they get drafted.

September 12 2013 at 12:47 AM Report abuse rate up rate down Reply

Thomas Edison got to use DC for his lights but it was used mostly for Flash lights.

Thomas Edison moved his lab out of Menlo park NJ. You should see the area now! :(

September 12 2013 at 12:43 AM Report abuse rate up rate down Reply

Wasn't it J P Morgan who once bailed out the US government after he caused the country to go broke? Hmm; I thought so! What was Carnigie's excuse he hit his head on a steel beam?

September 12 2013 at 12:33 AM Report abuse rate up rate down Reply

Hope the new Iphone has a camera so you can take a picture of this crappy low wage job market . The Stock market is over blown on fraud and cheap labor etc.

September 12 2013 at 12:29 AM Report abuse rate up rate down Reply

america we are now printing money to buy our own debt in treasury notes or the bond market goverment debt.. we have no money to pay back on our own debt . printed 4 trillion in new money this devalues our dollors. middle income will suffer . get less for the dollor. salaries fall farther back. big deficets 6 trillion. america you are beingf taken to the abbys. a place america has never been. i bet you never come back. barack obama is your champion, good luck. you are lost just like he is leading you to no where land.

September 12 2013 at 12:08 AM Report abuse rate up rate down Reply

Poor Apple...

As a result of the unveiling of their new over-hyped, and over-priced iPhones, they've managed to disappoint BOTH their ever-shrinking fan base AND Wall Street.


September 11 2013 at 11:33 PM Report abuse rate up rate down Reply
1 reply to drpmindmender's comment

Right they should incuded an App so you can view all the underpaid sweatshop labor risk their lives in those dangerous slave factories.

September 12 2013 at 12:42 AM Report abuse rate up rate down Reply

Wow Apple, are we to be amaze at your latest iphone ? What did you manage to do besides put the SOS in a new case with color ! Apple you are so behind the times that catch up will be all but impossible with Android. There was a time an Apple product meant cutting edge tech built from high quality materials. I was even a Mac user but not anymore. When you lost the computer crown to HP of all companies and then continued to revise the iphone every other day with on real improvements (colored case oh wow) the writing was on the wall. Now I will buy a cheap PC, down load a free copy of the many Linux OS (free with every free app you could ever dream of). I will also buy Android based phones as Android does where iphone doesnt.

September 11 2013 at 11:29 PM Report abuse rate up rate down Reply