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US STOCKS-Wall Street higher on Apple-led rally in technology shares

Published 30/09/2019, 15:07
© Reuters.  US STOCKS-Wall Street higher on Apple-led rally in technology shares
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* Apple rises as JP Morgan lifts shipment volume forecast

* Mallinckrodt up on opioid settlement with Ohio counties

* UnitedHealth slips after downgrade from BMO Capital

Markets

* Indexes up: Dow 0.32%, S&P 0.40%, Nasdaq 0.42%

(Updates to open)

By Medha Singh

Sept 30 (Reuters) - Technology stocks led by Apple lifted

Wall Street's main indexes on Monday, as investors looked past

last week's reports that Washington was considering delisting

Chinese companies from U.S. stock exchanges.

Apple Inc AAPL.O rose 1.3% as Chief Executive Officer Tim

Cook told a German daily, Bild, that iPhone sales were off to a

strong start, and JP Morgan raised its iPhone shipment volume

forecast. Microsoft Corp MSFT.O climbed 0.4%.

The technology sector .SPLRCT gained 0.6%, the most among

11 major S&P sectors. Only energy stocks .SPNY were in the

red, tracking a drop in oil prices. O/R

Still, the main indexes were on course to end the quarter

with their worst performance so far this year, with sentiment

swinging wildly due to developments in the U.S.-China trade war

and mixed indications from domestic economic data.

Reports about the United States curbing Chinese companies'

access to U.S. capital markets sparked a sell-off on Friday,

with the S&P 500 .SPX and Nasdaq .IXIC hitting a more than

three-week low during the session.

However, on Monday, White House trade adviser Peter Navarro

dismissed the reports as "fake news." "If the U.S. goes down this road, it could have some serious

repercussions," said Robert Pavlik, chief investment strategist

at SlateStone Wealth LLC in New York.

"It could possibly lead to the Chinese selling U.S.

Treasuries and could put pressure on the Treasury market, so it

needs to be well thought out before being executed."

China was the second largest owner of U.S. Treasuries in

July, behind Japan, but its holdings were the smallest since

April 2017. U.S.-listed shares of Alibaba Group Holding Ltd BABA.N ,

Baidu Inc BIDU.O and JD.com Inc JD.O were up between 1% and

2.2%.

The third quarter witnessed an escalation in U.S-China trade

tensions, the inversion of an important part of the U.S. yield

curve, a second U.S. interest rate cut and political turmoil in

Washington.

The S&P 500 and Dow are on track for their smallest

percentage gain in three quarters, with the Nasdaq heading for a

marginal decline. The benchmark index is now about 2% away from

its record high hit in July.

At 9:55 a.m. ET, the Dow Jones Industrial Average .DJI was

up 85.32 points, or 0.32%, at 26,905.57, the S&P 500 .SPX was

up 11.84 points, or 0.40%, at 2,973.63. The Nasdaq Composite

.IXIC was up 33.48 points, or 0.42%, at 7,973.11.

In a bright spot, Newell Brands NWL.O jumped 3.5% after

SunTrust Robinson Humphrey upgraded the household goods maker to

"buy" and said it expected the company's turnaround process to

continue well in 2018.

Drugmaker Mallinckrodt MNK.N rose 1.8% after finalizing a

settlement with Cuyahoga and Summit counties in Ohio in

connection with opioid-related lawsuits.

Advancing issues outnumbered decliners by a 1.52-to-1 ratio

on the NYSE and a 1.55-to-1 ratio on the Nasdaq.

The S&P index recorded 10 new 52-week highs and no new lows,

while the Nasdaq recorded 12 new highs and 52 new lows.

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