Stocks slightly higher; tech stocks rally on Apple earnings
NEW YORK - U.S. stock indexes closed slightly higher Wednesday after a mixed day on Wall Street as gains in technology companies were offset by weakness in other sectors.
Apple shares jumped 6% to its highest level in more than a year Wednesday after reporting a day earlier that sales of iPhones turned higher after a slump.
Apple reported first-quarter profit and sales that were better than analysts expected. The company said consumers snapped up its new iPhone 7 and 7 Plus, and that ended the first-ever slump in iPhone sales. Apple stock rose $7.44 to $128.79.
The big gains for Apple, the world’s most valuable publicly-traded company, took technology stocks higher. The Nasdaq composite index rose 27.86, or 0.5%, to 5642.65.
Other major indexes posted smaller gains. The Dow Jones industrial average rose 26.85 points, or 0.1%, to 19,890.94. The Standard & Poor’s 500 index eked out a gain of 0.68 to 2279.55.
Fed stands pat on rates, no signal on March hike
The Federal Reserve left its key interest rate unchanged, just as investors expected. The central bank noted that the job market is getting stronger and inflation is gradually rising, but said it wants more time to monitor the economy.
Investors had assumed rates would stay the same this month. Kate Warne, an investment strategist for Edward Jones, noted that the central bank just increased rates in December and the Trump administration’s spending and fiscal plans still haven’t been spelled out.
“They’ll wait until they actually know what’s going to happen,” she said of the Fed.
A survey showed private U.S. employers hired new workers at a faster pace in January, a sign that the economy could be getting stronger. The hiring was greater than expected, and the construction, manufacturing, health care and shipping industries all adding jobs at a solid pace. The U.S. government will release its own monthly jobs report Friday.
“Economic growth appears to be strengthening even though fourth-quarter growth came in weak,” said Warne, of Edward Jones.
ADP report may signal strong job tally Friday
Investors reacted to the hiring report by selling government bonds, which are relatively safe investments that are in greater demand when the economy seems weaker.
Bond prices fell. The yield on the 10-year Treasury note jumped to 2.48% from 2.44%. Financial stocks rose, as higher interest rates allow banks to charge more money for lending.
Oil prices stayed within a small range. U.S. crude added $1.07, or 2%, to $53.88 a barrel in New York. U.S. oil has stayed between roughly $52 and $55 a barrel for the last two months.
Stocks in Europe got a boost from the ADP survey and a report that said manufacturing in China grew at its fastest pace in two years in January. Heavy government spending and more lending by banks helped keep the economy steady. Germany’s DAX added 1.1% while the CAC 40 of France rose 1%. The FTSE 100 index in Britain picked up 0.1%. Japan’s Nikkei 225 rose 0.6% after a skid on Tuesday. The Kospi in South Korea jumped 0.6%. Hong Kong’s Hang Seng fell 0.2%.