MARKETS-STOCKS/USA CLOSE Wall Street dips after China data; Fed eyed; Apple up

Record ID: 141116

  • Title: MARKETS-STOCKS/USA CLOSE Wall Street dips after China data; Fed eyed; Apple up
  • Date: 14th September 2015
  • Summary: NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) VARIOUS DISPLAYS OF IPHONES AT AN APPLE STORE VARIOUS OF CUSTOMERS BUYING IPHONES AT AN APPLE STORE MORE OF IPHONE DISPLAYS
  • Embargoed: 29th September 2015 13:00
  • Keywords:
  • Topics: General
  • Reuters ID: LVA2O6RIXJM4H0CC02MDZJV121ID
  • Aspect Ratio: 16:9
  • Story Text: U.S. stocks closed down on Monday (September 14) as many investors put off making big bets ahead of the Federal Reserve's policy meeting this week and others worried about weak economic data from China.
    Stocks are expected to stay volatile ahead of a Federal Reserve announcement scheduled for Thursday after a two-day meeting at which it will decide whether or not to make its first interest rate increase since 2006.
    The Fed has said it will raise rates when it sees a sustained economic recovery with emphasis on jobs and inflation but while the jobs market has improved inflation has been held down by weak oil prices.
    A broad group of economists polled by Reuters last week bet on a September move by a slim margin; economists at banks that deal directly with the Fed, known as primary dealers, picked December as more likely; and traders of short term interest rate futures were giving a rate rise this week only a one-in-four chance.
    Stocks have been volatile since China devalued its currency in August. The S&P 500 has had moves of at least 1 percent in more than 10 sessions since Aug. 20.
    Trading was slow with about 5.4 billion shares changing hands on U.S. exchanges, below the 8-billion daily average for the previous twenty sessions, according to Thomson Reuters data.
    Also weighing on stocks was data showing China's investment and factory output in August missed forecasts, raising chances China's third-quarter economic growth may dip below 7 percent for the first time since the global crisis.
    Despite worries over China, the country's demand for Apple's iPhone sent the company's stock upwards.
    Apple shares ended up 0.96 percent at $115.31 (USD) after it said iPhone pre-orders were on track to beat last year's first-weekend record. The company said that advance orders of its new iPhones were on pace to beat the 10 million units the previous versions logged in their first weekend last year, a feat that analysts attributed to the inclusion of sales from China.
    The Chinese debut of the prior models, the iPhone 6 and 6 Plus, was delayed last year as the company awaited approval from regulators. Many analysts say China is poised to overtake the United States as Apple's biggest market.
    Searching for signs of whether Apple can top its 2014 performance, investors were initially encouraged by the company's remarks but later tempered their enthusiasm. Apple shares were up 0.7 percent in afternoon trading after rising as much as 2.3 percent earlier in the session.
    Apple did not disclose the specific number of advance orders it received for the new iPhone 6S and 6S Plus. Analysts had expected about 4.5 million for the first 24 hours, compared with 4 million during the first day last year.
    Apple began taking preorders on Saturday for the phones, which will begin shipping Sept. 25.
    The Dow Jones industrial average fell 62.13 points, or 0.38 percent, to 16,370.96, the S&P 500 lost 8.02 points, or 0.41 percent, to 1,953.03 and the Nasdaq Composite dropped 16.58 points, or 0.34 percent, to 4,805.76.
    Nine of the 10 major S&P sectors fell, led by the materials index. Utilities rose 0.23 percent while the energy index fell 0.8 percent as U.S. crude oil prices settled down 1.4 percent.
    NYSE decliners outnumbered advancers 2,044 to 971, for a 2.11-to-1 ratio; on the Nasdaq, 1,709 issues fell and 1,068 advanced for a 1.60-to-1 ratio.
    The S&P 500 posted 2 new 52-week highs and 6 lows; the Nasdaq recorded 42 new highs and 72 lows.
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