Wednesday September 11th


Stocks inch higher, Apple leads the gains

Stocks traded slightly higher on Wednesday as Apple added to its gains from the previous session after unveiling a slew of new products. The Dow Jones Industrial Average traded 18 points higher, or 0.1%. The S&P 500 and the Nasdaq Composite climbed 0.1% and 0.3%, respectively. Apple shares traded 1.5% higher after climbing more than 1% on Tuesday. The tech giant unveiled three new iPhones on Tuesday along with a new Apple Watch and a TV subscription service. Apple also showcased a gaming subscription called Apple Arcade. Bank of America analyst Wamsi Mohan said Apple is pricing its new products was compelling. It’s gaming service is the cost of “one console game for access to 100 games for the entire family for a year.” However, “the biggest surprise at the event was monthly price for Apple TV+ service which was set at $4.99/month which is lower than we expected which makes it more attractive and can drive higher number of subscribers,” Mohan said. Apple’s gains gave the tech sector a much-needed lift. The sector rose about 0.2% after starting the week with a 1.2% decline. Tech has been under pressure amid a massive rotation away from growth-oriented shares into underappreciated value companies. On the data front, investors digested key inflation data. The U.S. producer price index rose 0.1% in August, while economists polled by Reuters expected the index to remain unchanged. Wall Street pored through the data as they look for clues on the Federal Reserve’s next move on monetary policy. The U.S. central bank is largely expected to lower rates in a meeting next week. Market expectations for a September rate cut are at 91.2%, according to the CME Group’s FedWatch tool. Wall Street also remained focused on U.S.-China trade relations. Beijing released a tariff exemptions list for products from the U.S. on Wednesday morning. Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs. Shares in Asia were mixed on Wednesday as investors awaited the European central bank’s interest rate decision later in the week. Mainland Chinese shares were lower on the day, with the Shenzhen component declining 0.935% to about 1,671.54 and the Shenzhen composite down 1.12% to 9,853.72. The Shanghai composite slipped 0.41% to around 3,008.81. Meanwhile, Hong Kong’s Hang Seng index rose 1.51%, as of its final hour of trading. Elsewhere in Japan, the Nikkei 225 rose 0.96% to close at 21,597.76 while the Topix index gained 1.65% on the day to 1,583.66. South Korea’s Kospi closed 0.84% higher at 2,049.20. Oil prices rose on Wednesday after a reported sharp drop in U.S. crude stocks and OPEC member Iraq said the producer group would discuss deepening output cuts amid ongoing demand concerns. Brent crude gained 0.55% to $62.72 a barrel, while U.S. West Texas Intermediate rose 0.3% to $57.56 a barrel. Gold prices edged up on Wednesday, snapping a four-day losing streak on technical buying, amid expectations that the European Central Bank will dole out stimulus and cut interest rates. Spot gold was up 0.3% at $1,490.27 per ounce, as of 0732 GMT. In the previous session, prices fell to their lowest since Aug. 13 at $1,483.90. U.S. gold futures were up 0.2% at $1,502.2 an ounce.