There was a halt today in the stock market's September surge. The indexes were mixed following six straight days of gains. The breather came on the heels of President Obama's speech on Syria outlining his decision to now pursue a course of disarmament before Congress votes on a plan to strike military targets. The idea was first mentioned by U.S. Secretary of State John Kerry and then officially proposed by Russia.
Apple (AAPL) tanked today as investors reacted to the latest iPhone offerings. Shares fell as much as 6% during the day, their biggest plummet in more than five months. As expected Apple unveiled a refresh of the iPhone 5 called the 5S, as well as a lower cost option called the 5C. That model is aimed mainly at emerging markets. It will initially sell for $99 with a service contract. But there are concerns because the price climbs to $733 without a carrier subsidy in China. Here in the U.S. it will sell for $549 without subsidies.
IT supply chain company Synnex (SNX) skyrocketed 20% on the purchase of IBM's customer care businesses. The companies announced the deal yesterday with Synnex paying $505-million for the unit. It will also become IBM's strategic business partner under a multi-year pact. Today's gains put Synnex at an all-time high. Even prior to the climb, shares were up 37% year-to-date.
Gogo (GOGO) climbed nearly 11% on an announcement that it's rolling out higher-speed internet service for planes. The new system will use a combination of satellites and cellular towers for web speeds that are six times faster than current options. JetBlue has already said it plans to offer the service by year's end. Virgin America plans to add service in about a year. Gogo went public on June 21st. Before today's climb, it had fallen 23% since the initial offering.
From a company called Gogo, to one with exotic dancers, "Rick's Cabaret" (RICK) fell more than 2% today. A judge has sided with the chain's strippers, saying they are protected by minimum wage laws. The company had tried dancing around the law by saying the women on stage were independent contractors. But a pamphlet of entertainer guidelines, like requiring four-inch stilettos, swayed the judge in the plaintiffs' favor. Prior to today, Rick's was up 50% year-to-date, mostly on gains made several weeks ago, when the company beat revenue estimates in its quarterly report.
Marriott (MAR) climbed more than 3% on an upgrade from UBS. The firm moved the hotel chain to buy from neutral citing positive trends in North America. UBS gave Marriott a new price target of $52, more than $10 north of where shares opened this morning. So far the stock has underperformed its peers this year up 7% prior to today.
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