US stocks followed a global rally with indexes boosted by a surge in investor confidence after an event-free weekend on the North Korea front. Hurricane Irma, on the other hand, was downgraded to a category 4 tropical storm as it hit Florida on Sunday causing severe flooding but less damage to the state than feared. However, the hurricane has caused significant damage and death across the Caribbean as a category 5 storm over last week.
The Dow jumped 252 points or +1.15% to 22,048.36. The S&P 500 was up 25 points or +1.04% to 2,486.99 and Nasdaq up 71.70 points or +1.13% to 6,431.65. The dollar returned to strength, ahead of retails sales and consumer price data due later this week. The dollar index was up +0.67% to 91.92. Gold retreated falling -1.47% to $1,331 per ounce.
Weather proof: Sectors leading the Dow were consumer electronics up +4.86%, tires up +4.33%, airlines up +2.99% and commodity chemicals up +2.62%. Among individual stocks registering gains as the threat of Hurricane Irma receded were large insurers, Travelers up +2.35% while smaller insurers XL Group (+5.02%) and Everest Re (+4.26%) also benefitted. Banks such as Goldman Sachs and JP Morgan Chase were up +1.79% and +1.55% respectively as US Treasury benchmark yields fell. American Airlines rallied +5.18% as investors assessed the storm was unlikely to hinder the travel industry too much.
- Dow 22,057.37 +1.19%
- S&P 500 2,488.11 +1.08%
- Nasdaq 6,432.26 +1.13%
- Russell 2000 1,414.37 +1.07%
- NYSE Composite 12,005 +0.99%
- Gold 1,331.4 -1.47%
- Oil WTI $48.04 +1.18%
- 10-Year Treasury 2.13 +0.07%
Apple iPhone launch: will X mark the spot?
Apple shares also lifted the Dow up +1.81%. On Tuesday, if the leaks are correct, the company's new premium model launched on Tuesday will be called X. Apple is also rolling out newer iPhone 8 and 8s models to supercede iPhone 7 and 7 plus models with upgraded internals - faster chips and a better camera. Superfans are able to stream the event live at 10 am PDT or 1 pm EST.
The big reveal is, of course, the premium model iPhone X. The $1,000 price tag seemingly piques equal interest as to whether features will justify the price or act as a turn-offf to the price sensitive. Rumours have swirled for months about the luxury model. Anticipated features are wireless and fast charging (possibly as extras), 3D scanning capability, Face ID authentication and animated emojis that reflect the user's emotions and even a touted colour change.
Analyst, Ming-Chi Kuo from KGI Securities was quoted in AppleInsider warning the iPhone X "will remain in severe short supply." However, there is no expectation that limited supplies will impact on Apple's stock. The iPhone 8 and iPhone 8 plus is slated for sale in stores by the end of September but there is no timeline proposed for the iPhone X yet.
Quote of the day adds context: "We also know there is a cohort of consumers that see owning the latest Apple device as the latest status symbol...We also expect Apple will once again under-produce relative to initial demand, magically once again leading to the latest and potentially greatest iPhone being sold out." Source: Forbes/Chris Versace, chief investment officer of Tematica Research.