Wall Street close a great July; Apple Jumps after a robust 3Q report
InvestingOnline.com
1/08/2018, 00:07US stocks market closed Tuesday with substantial gains and finished a great July where the Dow rose 4.7% on the month, and the S&P 500 rallied 3.6%. The Nasdaq Composite closed its fourth monthly gain.
Investors cheered strong corporate earnings, positive economic data, and the trade war rollercoaster. Today, news that the United States and China are ready to have talks to avoid the tariff conflict fueled market sentiment.
The S&P 500 rose 13.69 points or 0.49% to close Tuesday at 2,816. During the last five trading days, the S&P 500 has lost 0.15%; however, the index finished July 3.6% positive.
The Dow Jones Industrial Average closed 0.43%, or 108.36 points, positive on Tuesday at 25,415.19. During the last five trading days, the DJIA has gained 0.69% to close at 25,415. In the last month, the DJIA rallied 4.7%.
The NASDAQ Composite advanced 0.55%, or 41.79 points, to finish the day at 7,671.78. During the last five trading days, the NASDAQ has lost 2.16% to close at 7,672. On the month, the Composite rose over 2% after closing its fourth positive month.
On the month, all sectors finished with gains. The leader was the information technology sector that rallied 6.7% in July. Health care rose 5.65% in the last 31 days; while industrials advanced 3.89%.
The laggards were consumer staples with a gain of 0.78%; Utilities with a 1.11% gain and the energy component with 1.21% increases in July.
Apple jumps after a big beat on service revenue
Apple daily chart July 31
Shares of Apple are rallying after hours as investors welcomed an upbeat earnings report. Apple reported a Q3 EPS of $2.34, improving estimates by $0.16.
The Palo Alto giant had revenue of $53.3 billion, 17.4% more than the same quarter in the previous year. Revenues beat estimates by $870 million.
“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said Tim Cook, Apple’s CEO.
According to the press release, Apple’s “Q3 results were driven by continued strong sales of iPhone, Services, and Wearables.” The company is “very excited about the products and services in our pipeline.”
Apple’s beat on earnings was fueled by the software and services segment after the iPhone maker posted at 31% yearly increase in the revenues for this segment to $9.55 billion. It is an excellent step on Apple’s milestone of a services revenue of more than $14 billion a quarter by 2020.
