- POSTED: 12 Sep 2013 05:04
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US stocks closed mixed on Wednesday, with the Dow surging sharply higher and Apple dragging down the Nasdaq after its iPhone launch missed expectations.
NEW YORK: US stocks closed mixed on Wednesday, with the Dow surging sharply higher and Apple dragging down the Nasdaq after its iPhone launch missed expectations.
The Dow Jones Industrial Average surged 135.54 points (0.89 percent) to 15,326.60.
The broad-market S&P 500 index advanced 5.14 points (0.31 percent) to 1,689.13, while the tech-rich Nasdaq dipped 4.01 points (0.11 percent) to 3,725.01.
After two days of gains, the stock indexes diverged as Apple took a beating a day after unveiling two new iPhones and dashing expectations that a media event in Beijing would reveal a deal with China Mobile, the country's biggest carrier.
The technology giant's shares sank 5.4 percent to $467.71.
"The company failed to impress the analyst community with its latest iPhone introductions and the lack of an announcement of a China Mobile deal," said Patrick O'Hare of Briefing.com.
Apple also suffered downgrades, including from Bank of America and UBS.
Wall Street had little reaction to President Barack Obama's televised address to the nation late Tuesday, when he opened the door to a diplomatic solution to a military strike on Syria, O'Hare said.
"The speech wasn't surprising and the relief that a diplomatic solution looks possible has been priced in."
The economic calendar was light. Mortgage applications fell 13.5 percent last week from the prior week, and refinancing applications dropped 20 percent to its lowest level since June 2009, amid rising interest rates, according to a Mortgage Bankers Association report.
Verizon Communications edged up 0.1 percent as it launched a $49 billion bond sale, by far the largest corporate bond sale in history.
Verizon is issuing new debt to help fund its $130 billion buyout of Vodafone's 45 percent stake in their joint venture Verizon Wireless.
Other tech stocks scored strong gains. On the Dow, IBM jumped 2.2 percent and Microsoft rose 1.1 percent.
Texas Instruments fell 0.7 percent after lowering its earnings and profit forecast for the third quarter.
General Motors slid 1.8 percent. The Canadian government and Ontario province announced they had sold about a fifth of their share in General Motors, four years after joining a US bailout of the auto giant.
Home furnishings retailer Restoration Hardware Holdings plunged 11.9 percent after reporting a swing into loss in its fiscal second quarter as sales fell 4.7 percent from a year earlier.
Bond prices rose. The yield on the 10-year Treasury fell to 2.91 percent from 2.96 percent late Tuesday, while the 30-year dropped to 3.85 percent from 3.89 percent. Prices and yields move inversely.