US Stock Market Overview – Stocks End Mixed, Apple Event is in Focus

US stocks settled mixed on Monday, with the Dow slightly higher and the Nasdaq and S&P 500 closing slightly in the red. Sectors were mixed with discretionary shares and energy buoying the market, and technology and communication services weighing the broader markets. Apple was in focus on Monday as the company had its annual event describing its new products. This year, Apple for the first time, focused on new software products. Shares were underpressure most of the session as traders took profits. Generally, the shares rise into the event and then drop on the day of and days following. There was little in the way of economic news on Monday.

US Yields Continue to Head South

The markets were also absorbing the news over the weekend that the Mueller report was complete and Trump was exonerated of any crimes related to colusino. Yields continued to tumble on Monday. The 10-year yield dropped below the 2.4% level for the first time since December of 2017. The German bund yield also decline closing the session near -0.03%. This is the first close below zero in nearly 2-years.

Apple Event Focuses on Software

Apple announced a slew of new software products as well as one hardware upgrade. The company announced a new subscription film and TV platform to compete with Netflix and Hulu. This will include subscriptions to original TV and shows. Since Apple has a hold of captive customers that use their phones, this product is likely a winner. Apple also announced a news service that will allow people to subscribe to magazines and papers. The company also announced a new gaming subscription service which is expected to allow individuals to play games on their phones.

This will be one of the first events that Apple is not announcing a new hardware product. Instead nearly all of the products that are released with be software released. The company did announce a new charging set will be the most convenient new hardware upgrade to the iPhone. It also appears that the strategy for Apple is changing following the drop in sales due to the declines in economic growth in China. Add on value added products such as subscription services could allow Apple to monetize products and use the cash it has on hand to compete in the content market.

Apple is Releasing a News App

The news app, called Apple News Plus, is a premium version of the existing, free Apple News app that will be priced at 9.99 a month. The app will provide access to articles from more than 300 magazines including Vogue, GQ and Sports Illustrated, as well as newspapers such as The Wall Street Journal and the Los Angeles Times.