Stock market news: September 10, 2019
The S&P 500 and Dow ended slightly higher Tuesday as a rotation into value stocks from their growth counterparts persisted. Treasury yields rose, and the yield on the 10-year note broke above 1.7%.
After being lower for much of the session, the Dow turned positive during intraday trading following a South China Morning Post report that China was considering a deal to purchase more American agricultural goods ahead of the next round of trade meetings between U.S. and Chinese negotiators.
Here were the main moves in the market by the end of regular equity trading:
S&P 500 (^GSPC): +0.03%, or 0.96 points
Dow (^DJI): +0.28%, or 73.92 points
Nasdaq (^IXIC): -0.04%, or 3.28 points
10-year Treasury yield (^TNX): +10.8 bps to 1.73%
Gold (GC=F): -1.03% to $1,495.50 per ounce
China data
Overseas, signs of a worsening slowdown in China continued to mount, with new data pointing to weakening pricing power for producers and steeper prices for consumers in the world’s second largest economy.
China’s producer prices index (PPI) fell 0.8% in August over the year prior, yawning from a 0.3% decline in July and marking the steepest decline by this measure in three years. At the same time, the country’s consumer price index (CPI) rose a faster-than-expected 2.8% over last year during the month.
Beijing, however, has increasingly unveiled stimulus measures to try and reignite growth. On Tuesday, the Chinese government removed limitations to make it easier for foreign investors to purchase Chinese stocks and bonds, in a move to encourage foreign capital into the country. This comes after the government on Friday reduced the amount of cash banks must hold in reserves to try and boost lending and inject liquidity into the country’s financial systems.
Apple event
Apple’s (AAPL) product launch event in Cupertino, California, took centerstage Tuesday. The company unveiled its newest set of smartphones, as well as updates to its other hardware and services offerings.
These unveilings come at a critical juncture for Apple, which has faced skepticism over the longevity of demand for its premium hardware, as well as concerns over the impact of the U.S.-China trade war on the company. However, Wall Street was mostly unfazed by Tuesday’s event, with the stock ending higher by just over 1%.
“As expected, updates can generally be described as more incremental than dramatic,” PiperJaffray analyst Michael J. Olson, who rates shares of Apple as Overweight, wrote in a note. “For iPhone, the expectations going into the event regarding improved cameras and faster processors were largely accurate.”
The company’s newest smartphone, the iPhone 11, will be priced starting at $699, or $50 less than the iPhone XR. The new specs include a 6.1-inch display, dual-camera setup on the back panel, a battery that lasts an hour longer than that in the XR and an A13 Bionic chip capable of faster processing. Apple unveiled two premium phones as well, called the iPhone 11 Pro and iPhone 11 Pro Max, which each feature a new triple-lens camera set in the back, and hours more of battery life compared to that of the previous iPhone XS and XS Max.
[Read more: Apple reveals iPhone 11, 11 Pro and 11 Pro Max]
The company also announced the launch dates and pricing for some of its new services offerings, including Apple TV+ and Apple Arcade gaming subscription.
Apple priced its original video subscription service, set for launch November 1, at $4.99 per month. This was lower than the base streaming subscription packages offered by competitors including Netflix (NFLX) and Disney (DIS). Shares of both companies each fell shortly following Apple’s announcement.
“The pricing of Apple’s streaming TV service at $4.99 per month is a ‘show stopper’ and a major shot across the bow at the likes of Netflix and Disney among others,” WedBush analyst Dan Ives wrote in a note. “The Street was anticipating a $7.99-$9.99 price point as clearly Cupertino is looking for market share coming out of the gates with these surprising price points that we loudly applaud.”
Ives added he expects Apple has the opportunity to gain some 100 million consumers in streaming over the next three to four years. For comparison, incumbent streaming giant Netflix exited its fiscal second quarter this year with more than 150 million global subscribers.
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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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