US stocks extended their gains on Thursday after Apple (NASDAQ:AAPL) shares advanced for a fourth day and higher crude prices buttressed the bourse.
The S&P 500 closed 1% higher at 2,147, led by a 1.7% gain in the information technology sector.
Skyworks Solutions (NASDAQ:SWKS), a chip supplier to Apple, clocked the biggest gains in the sector and led the S&P 500, rising by 6.4% to $77.02. But it was a fourth straight day of gains for Apple that caught investors’ attention as the stock closed up 3.4% at $115.57 on the eve of sales of its new iPhone 7 smartphone. Read more.
Apple shares advanced nearly 12% over the past four days — adding more than $50bn to its market valuation — amid higher than expected demand for its latest iPhone.
The S&P Midcap 400 ended up 1.1% at 1528 while the S&P Smallcap 600 finished up 1.3% at 741 and the wider small-cap Russell 2000 by 1.3% at 1227.
The US oil benchmark, West Texas Intermediate was up 0.5% at $43.78.
Midsession
US stocks extended gains at midsession, as weaker retail sales, producer prices and industrial production data doused rate hike fears and higher oil prices gain the bourse support.
The S&P 500 market bellwether was up 1% at 2,147 while the S&P Midcap 400 advanced by 1.1% to 1528 and the S&P Smallcap 600 was up 1.2% to 740.
The US oil benchmark WTI was up 1.1% at $44.05 largely thanks to short covering by traders, ending a two-day slide as prices tracked a surge in gasoline futures and higher U.S. equity markets.
A case of one market feeding off the other, as higher oil prices also helps buoy the equity bourse.
Open
US shares zig-zagged their way to a higher opening on Thursday after weak retail sales, producer prices and industrial production data quenched a thirst for higher interest rates.
The S&P 500 market bellwether opened higher, dipped and then rose again. It was last seen up 0.2% at 2,129.
US retail sales fell by more than expected in August while producer price inflation continued to stay below Fed officials’ target.
Headline retail sales fell 0.3% last month, losing steam after edging up by a revised 0.1% in July, the Commerce Department said on Thursday. Analysts had penned in a smaller 0.1% decline.
Stripping out more volatile items like autos, petrol and building materials, also surprised on the downside. They fell 0.1%, against expectations for a 0.4% increase.
Meanwhile, US producer prices were flat in August after falling by the most in 10 months in July. The market had forecast a rise of 0.1%.
US industrial production shrank 0.4% last month – the biggest month-on-month decline since March and down markedly from the 0.6% increase registered in July.
The market had forecast a rise of 0.2%.
The weaker clutch of data reduces further any residual risk of a Federal rate hike on September 21.
The top S&P 500 riser was Goodyear Tire Rubber Company (NASDAQ:GT), up 3.4% at $31.86 after the company outlined its growth plan and financial targets. Goodyear's financial performance targets include $3bn in annual segment operating income in 2020 and cumulative free cash flow of $4.3-$4.9bn from 2017 to 2020.
Another top riser was Global Payments (NYSE:GPN), up 2.9% to $75.64 after broker Goldman Sachs upgraded the payment technology services company to "buy" from "neutral" on a variety of factors that point to strong revenue growth.
The S&P Midcap 400 was up 0.2% at 1516 and led by Akorn Inc (NASDAQ:AKRX) up 3.3% at $28.48.
The S&P Smallcap 600 added 0.4% to 734, and was led by computer services group Ciber Inc (NYSE:CBR) up 18% at $1.44.
Pre-Open
Wall Street shares seen opening higher after a mixed session yesterday and as traders await a load of economic data, including for retail sales.
It comes as across the Pond in London, the Bank of England left rates on hold - 0.25% having notched them down a quarter of a percent last time, to ease Brexit monetary worries.
The Dow Jones Industrial Index closed down 31 yesterday at 18,034 as the oil price sagged on supply data.
The S&P 500 market bellwether ended down 0.06% at 2,125, while the S&P Midcap 400 lost 0.3% to 1512 and the S&P Smallcap 600 shed 0.4% to 732. But the tech heavy Nasdaq did make gains - up 18 points at 5,173.
In futures today, the Dow is 53 points to the good; the S&P500 is up 6.25 points, while the Nasdaq is up 15 points so it looks like a more positive day in store.
Oil is also up with US crude up 0.69% to US$43.88.
In store on the data front is August retail sales shedding light on the state of consumer confidence in the US, there is also jobs data and producer price statistics expected.
On the Fed front, it is no clearer on whether they will raise rates or not, but the UK decision or commentary may influence.
Apple, (NASDAQ:AAPL), the tech giant is in focus again, with shares in pre-market nudging 1.28% higher despite reports of its latest mobile operating system, which powers the iPhone and iPad, iOS 10, causing problems for downloaders during the launch and 'bricking' devices, namely leaving them useless.
It seems however the market is more concerned with potentially strong sales for Apple's new iPhone 7 and iPhone 7 Plus.