S&P Rides Apple’s Surge to Record High as Tech Melt Up Continues

imageStock Markets7 hours ago (Aug 21, 2020 04:05PM ET)

(C) Reuters.

By Yasin Ebrahim

Investing.com – The S&P closed at a record high on Friday, as an Apple-infused rally in tech and positive economic data prompted investors to raise their bullish bets on stocks.

The S&P 500 closed 0.42% higher at a record 3,395, the Dow Jones Industrial Average rose 0.69%, or 190 points. while the Nasdaq Composite gained 0.42% to close at another record.

Apple (NASDAQ:AAPL) surged 5%, leading the charge higher for the tech sector despite losses in other big tech names such as Microsoft (NASDAQ:MSFT), Facebook (NASDAQ:FB), and Amazon.com (NASDAQ:AMZN).

The surge in Apple comes just months to go until the release of its new slate of 5G-enabled iPhones, which many expect will be a game-changer for the upgrade cycle.

“Our recent Asia supply chain checks conducted by our TMT team show a discernible uptick in forecasts for iPhone 12, which bodes well for demand trends heading into this highly anticipated October launch,” Wedbush said in a note.

Tesla (NASDAQ:TSLA) was also in focus, rising more than 2% to a new high at $2,049 as it prepares for a five-for-one stock split – a move that will make the stock more affordable for retail investors.

Energy, however, proved an exception to the day’s move higher as oil prices slipped on concerns that a slower pace of economic recovery could hurt demand.

But not every sector of the economy is flagging a potential slowdown. Housing remains robust, while a survey on business activity also surprised to the upside.

The Commerce Department said existing home sales rose by a record 24.7% in July to a seasonally adjusted annual rate of 5.86 million units., topping forecasts for a 14.7% rise.

“Given the continued plunge in mortgage rates, there is probably further upside for demand in August,” Jefferies (NYSE:JEF) said.

IHS Markit data showed flash Composite Purchasing Managers’ index of 54.7 for August, above forecasts of 51.3.

Upbeat quarterly corporate earnings also supported investor sentiment on stocks.

Deere (NYSE:DE) advanced more than 5% after the company reported fiscal third-quarter results that beat on both the top and bottom lines.

Foot Locker (NYSE:FL) also delivered quarterly results for the second quarter that topped analysts’ consensus, sending its share price up 1%

S&P Rides Apple’s Surge to Record High as Tech Melt Up Continues

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>