US Stocks traded on a high note after earnings report from Apple
Stocks in the US started off on a positive note on the heels of a better than expected earnings report from Apple (NASDAQ:AAPL) which helped lift the broader indices. The Dow Industrials finished the trading session at a new all-time high up 111 points at 15,680. Retail sales and Producer prices were reported for September in line with expectations. At the end of the week, investors will need to absorb October data with the ISM releasing their manufacturing report.
Apple released earnings that showed that net profit declined but beat forecasts. Apple’s fiscal 4th quarter net profit fell to $7.5 billion from $8.2 billion a year earlier, although revenue climbed 4% to $37.5 billion and beat consensus, as did earnings per share of $8.26. The company reported that iPhone volumes rose following the introduction of the 5s and 5C which are new models in September, although iPad shipments were flat. On the earnings call, Apple CEO Tim Cook said the company will announce any changes to its capital allocation early next year. This is aimed at discussing the request from Carl Icahn to increase the buyback program.
In economic news, Retail sales fell 0.1% in September from a month earlier, according to the Commerce Department. Economists surveyed had forecast a 0.1% rise. Excluding autos, retail sales increased by 0.4% as consumers spent more on core goods. Retail sales excluding autos rose by just 0.1% in August. Excluding gasoline and autos retail sales climbed by 0.4% as well.
On the inflation front, the BLS reported that the producer price index dipped 0.1 percent last month, the first decline since April, after advancing 0.3 percent in August. Year over year wholesale prices rose 0.3 percent, the smallest gain since 2009. That compared to a 1.4 percent increase in August. Producer prices excluding food and energy costs nudged up 0.1 percent after being flat in August. In the 12 months through September, the core PPI increased 1.2 percent after rising 1.1 percent in August.
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