S&P Rides Apple’s Surge to Record High as Tech Melt Up Continues

(C) Reuters.

By Yasin Ebrahim

Investing.com – The S&P closed at a record high on Friday, as an Apple-infused rally in tech and positive economic data prompted investors to raise their bullish bets on stocks.

The S&P 500 closed 0.42% higher at a record 3,395, the Dow Jones Industrial Average rose 0.69%, or 190 points. while the Nasdaq Composite gained 0.42% to close at another record.

Apple (NASDAQ:AAPL) surged 5%, leading the charge higher for the tech sector despite losses in other big tech names such as Microsoft (NASDAQ:MSFT), Facebook (NASDAQ:FB), and Amazon.com (NASDAQ:AMZN).

The surge in Apple comes just months to go until the release of its new slate of 5G-enabled iPhones, which many expect will be a game-changer for the upgrade cycle.

“Our recent Asia supply chain checks conducted by our TMT team show a discernible uptick in forecasts for iPhone 12, which bodes well for demand trends heading into this highly anticipated October launch,” Wedbush said in a note.

Tesla (NASDAQ:TSLA) was also in focus, rising more than 2% to a new high at $2,049 as it prepares for a five-for-one stock split – a move that will make the stock more affordable for retail investors.

Energy, however, proved an exception to the day’s move higher as oil prices slipped on concerns that a slower pace of economic recovery could hurt demand.

But not every sector of the economy is flagging a potential slowdown. Housing remains robust, while a survey on business activity also surprised to the upside.

The Commerce Department said existing home sales rose by a record 24.7% in July to a seasonally adjusted annual rate of 5.86 million units., topping forecasts for a 14.7% rise.

“Given the continued plunge in mortgage rates, there is probably further upside for demand in August,” Jefferies (NYSE:JEF) said.

IHS Markit data showed flash Composite Purchasing Managers’ index of 54.7 for August, above forecasts of 51.3.

Upbeat quarterly corporate earnings also supported investor sentiment on stocks.

Deere (NYSE:DE) advanced more than 5% after the company reported fiscal third-quarter results that beat on both the top and bottom lines.

Foot Locker (NYSE:FL) also delivered quarterly results for the second quarter that topped analysts’ consensus, sending its share price up 1%