After-bell earnings from Apple impress
US stocks rose to fresh 12-month highs yesterday as optimistic investors rode a wave of solid quarterly earnings, which continued after the session’s close when Apple’s shares jumped on its results.
Earnings from companies, including Gannett, which beat analysts’ expectations, and positive broker commentary on Caterpillar further encouraged investors looking for confirmation the economy is healing.
After the closing bell, Apple extended the stocks’ momentum following the iPhone maker’s results that also beat estimates and lifted US stock index futures. Its shares jumped 7 per cent in extended trading.
“The fact that they beat as aggressively as they have tells me that they are selling music, telephones and personal computers in a market where everyone has thought up until now that the consumer is dead,” said Phil Orlando, chief equity market strategist at Federated Investors.
“So clearly the rumors of the demise of the American consumer have been greatly exaggerated. Either that or Apple is just doing a phenomenal job that consumers can’t help themselves, they have to buy their products.”
Consumer spending is a closely watched economic indicator, as it accounts for roughly two-thirds of the US economy.
The Dow Jones industrial average .DJI added 96.28 points, or 0.96 per cent, to end at 10,092.19. The Standard & Poor’s 500 Index gained 10.23 points, or 0.94 per cent, to 1,097.91. The Nasdaq Composite Index rose 19.52 points, or 0.91 per cent, to 2,176.32.
The Dow industrials and the S&P 500 closed at levels not seen since October 2008, while Nasdaq is at an almost 13-month closing high.
Apple’s stock rose above $203 in extended trading after the company reported better-than-expected results as iPhone and Mac sales hit quarterly records. Apple shares jumped 7 per cent to $203.23.