Stocks extends gains; Dow turns positive

Stocks extends gains; Dow turns positive

Apple hit $1 trillion market cap in intraday trade–but that milestone is doing little for the Dow

The Dow Jones Industrial Average was slumping in midday trade, even as one of its key components, Apple, was flirting with a close at a major psychological benchmark. The Dow was most recently off 23 points, or 0.1%, at 25,305, with worries about a fresh clash between the U.S. and China overshadowing Apple Inc.’s attempt to finish Thursday’s trade as the first U.S. company to boast a $1 trillion market value in history (not adjusted for inflation). Apple hit a share peak at $207.05 in intraday trade, enough of a climb to drive it to that closely watched level, briefly. However, declines in industrial giants Boeing Co. as well as DowDuPont Inc. and fast-food franchise McDonald’s Corp. were combining to exact a hefty toll on the price-weighted Dow. Apple’s share gain, meanwhile, was contributing about 32 points to the gauge. A $1 move in any one of the Dow’s 30 components equates to a 6.8-point swing in the blue-chip benchmark. Other indexes, notably the Nasdaq Composite and the S&P 500 index are market-cap weighted. That means, companies with gargantuan values like Apple have an outsize influence on their movement. The S&P 500 was up 0.3%, while the Nasdaq rose by 0.9%. As an aside, it is important to note that Apple’s $1 trillion value won’t be officially realized until it closes at that level, for many market participants.

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Author: HEDGE

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