US Stocks Mostly Higher, but Apple Gives Back Gains after EventShares of Apple gave up earlier gains and were down more than 1% after the company wrapped up an event to showcase new products.
The major U.S. stock indexes finished higher on Tuesday on the hope the Federal Reserve would stick with its accommodative policy as the central bank’s two-day meeting got underway. The rally was impressive and a nice start to the week, but gains were limited as Apple Inc’s shares lost early gains following its rollout of a new virtual fitness service and a bundle of all its subscriptions, Apple One.
In the cash market on Tuesday, the benchmark S&P 500 Index settled at 3401.20, up 17.66 or +0.52%. The blue chip Dow Jones Industrial Average finished at 27995.60, up 2.27 or +0.01% and the technology-based NASDAQ Composite closed at 11190.32, up 133.67 or +1.21%.
Fed Begins Two Day Meeting
In its first policy meeting since Fed Chair Jerome Powell announced a more accommodative stance on inflation. Investors are also wondering if the U.S. central bank will add to its already considerable stimulus measures after talks in Congress stalled for another round of virus relief aid.
The central bank could switch its Treasury purchases toward long-dated debt to keep long-term yields low, some strategist said.
US Economic Data Better Than Expected
The Federal Reserve reported on Tuesday that U.S. industrial production rose 0.4 percent in August – its fourth consecutive monthly increase, but gains have plateaued since June. The Empire State Manufacturing Index, a monthly survey of manufacturers in New York State conducted by New York’s Federal Reserve Bank, confirmed that business activity expanded at a solid clip in September.
Separately, U.S. import prices increased more than expected for the same month, supporting the view that inflation pressures were building up.
Apple Falls After New Product Event; Face Criticisms
Shares of Apple gave up earlier gains and were down more than 1% after the company wrapped up an event to showcase new products. The tech giant debuted a new Apple Watch and a bundle for its services, such as Apple Music. The stock was up about 2% before the event began.
Streaming music firm Spotify Technology SA on Tuesday criticized rival Apple Inc, saying that a new subscription bundle offer from the iPhone maker abuses its dominant market position by favoring its own Apple Music service.
“We call on competition authorities to act urgently to restrict Apple’s anti-competitive behavior, which if left unchecked, will cause irreparable harm to the developer community and threaten our collective freedoms to listen, learn, create, and connect,” the music streaming company said.
Sellers Pressure Banks
Citigroup Inc dropped 4.3% following a report that federal regulators were preparing to reprimand the U.S. lender for failing to improve its risk-management systems.
JP Morgan Chase & Co slipped 2.4% as it lowered its full-year net interest income forecast.
Advancing issues outnumbered declining one on the NYSE by a 1.92-to-1 ratio; on NASDAQ, a 1.72-to-1 ratio favored advancers, Reuters reported.
The S&P 500 posted 21 new 52-week highs and no new lows; the NASDAQ Composite recorded 63 new highs and 15 new lows.
For a look at all of today’s economic events, check out our economic calendar.