Dow closes above 22,000 points

Ap­ple’s strong rev­enue sends stock aloft while oth­ers fall

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - MAR­LEY JAY

NEW YORK — Be­ing the world’s most valu­able pub­lic com­pany has its priv­i­leges, like get­ting al­most all the credit for the lat­est stock mar­ket mile­stone. Ap­ple made its big­gest jump in six months Wed­nes­day, help­ing send the Dow Jones in­dus­trial av­er­age above 22,000 points for the first time.

Ap­ple’s lat­est profit and rev­enue were bet­ter than an­a­lysts ex­pected, and the com­pany’s strong sales fore­cast sug­gests it’s con­fi­dent the next iPhone will reach the mar­ket on time. The tech­nol­ogy gi­ant’s stock climbed to an all-time high, and when some other tech­nol­ogy com­pa­nies, util­i­ties and in­dus­trial firms joined it, that was just barely enough to take the Stan­dard & Poor’s 500 in­dex higher as well.

Much of the rest of the mar­ket was mixed, how­ever, and most of the com­pa­nies listed on the New York Stock Ex­change fell. Movie theater com­pa­nies tum­bled af­ter AMC En­ter­tain­ment said U.S. box of­fice grosses are sink­ing. Health care com­pa­nies turned lower as pre­scrip­tion drug distrib­u­tor Car­di­nal Health gave a weak fore­cast, mostly be­cause of fall­ing generic drug prices. Re­tail­ers and shop­ping mall op­er­a­tors also sank.

The Dow av­er­age rose 52.32 points, or 0.2 per­cent, to 22,016.24. Ap­ple was re­spon­si­ble for 48 of those points.

The Stan­dard & Poor’s 500 in­dex, a much broader mar­ket mea­sure used by most pro­fes­sional in­vestors, added 1.22 points, or less than 0.1 per­cent, to 2,477.57.

The Nasdaq com­pos­ite inched down 0.29 points to 6,352.65. The Rus­sell 2000 in­dex of smaller-com­pany stocks shed 15.43 points, or 1.1 per­cent, to 1,412.90.

“The mar­ket’s not for­giv­ing for any com­pany that misses” Wall Street pro­jec­tions, said Ed­ward Jones in­vest­ment strate­gist Kate Warne. Over­all, she said in­vestors seem pleased that com­pa­nies are re­port­ing ris­ing prof­its based on greater rev­enue and strong de­mand in­stead of stock buy­backs and

other fi­nan­cial moves.

Ap­ple climbed $7.09, or 4.7 per­cent, to $157.14. That was the first time it set a record high in al­most three months. Its stock had slipped re­cently in part be­cause some in­vestors were wor­ried that pro­duc­tion prob­lems would de­lay the re­lease of the next iPhone, which would have hurt the com­pany’s fourthquar­ter sales. But Ap­ple’s rev­enue es­ti­mate was bet­ter than ex­pected and greater than last year, when the iPhone 7 was re­leased.

Movie theater op­er­a­tors and stu­dios de­clined af­ter

AMC said U.S. box of­fice re­ceipts dropped 4.4 per­cent in the sec­ond quar­ter, and it ex­pects the third quar­ter to be dif­fi­cult as well. AMC it is also tak­ing a charge of $200 mil­lion be­cause its in­vest­ment in an­other chain, Na­tional CineMe­dia, lost value. The com­pany is also plan­ning to re­duce costs by cut­ting op­er­at­ing hours and staff lev­els while try­ing to in­crease rev­enue with new pric­ing plans and dis­counts.

AMC shares dropped $5.60, or 26.9 per­cent, to $15.20 and Cine­mark Hold­ings lost $1.94, or 5.9 per­cent, to $37.82. Walt Dis­ney fell $1.04, or 1.8 per­cent, to $108.67. CBS gave up $1.27, or 1.9 per­cent, to $64.81 and Vi­a­com dipped $1.44, or

4.1 per­cent, to $34.09.

Re­tail­ers also stum­bled, which hurt smaller, U.S.-fo­cused com­pa­nies. Big 5 Sport­ing Goods re­ported a weak profit and sales that fell short of an­a­lysts’ fore­casts. Big 5 said sales of firearms, camp­ing and wa­ter sports equip­ment fell, and its es­ti­mates for the cur­rent quar­ter fell short of Wall Street’s es­ti­mates. Its stock fell 85 cents, or 7.8 per­cent, to $10.10.

Car re­tailer Au­toNa­tion also had a dis­ap­point­ing quar­ter as prices for used cars fell. It dropped $3.01, or 7.2 per­cent, to $38.96. Shop­ping mall op­er­a­tor GGP slid $1.13, or 4.9 per­cent, to $21.91 af­ter it said it doesn’t plan to sell it­self, and depart­ment store chain

Nord­strom dropped $2.45, or 5 per­cent, to $46.49 on re­ports the Nord­strom fam­ily might not suc­ceed in tak­ing the strug­gling com­pany pri­vate.

Pre­scrip­tion drug distrib­u­tor Car­di­nal Health fore­cast a much smaller profit than an­a­lysts ex­pected. The com­pany said it’s be­ing hurt by lower prices for generic drugs, as well as smaller in­creases in the prices of brand-name drugs and the loss of a con­tract with the Safe­way gro­cery chain. The com­pany’s stock fell $6.34, or 8.2 per­cent, to $70.99.

Ge­netic tools com­pany Il­lu­mina raised its pro­jec­tions for the rest of the year af­ter de­mand for its No­vaSeq ge­netic se­quenc­ing sys­tem was

bet­ter than it ex­pected. Its stock gained $25.55, or 14.8 per­cent, to $197.85.

Bench­mark U.S. crude rose 43 cents to close at $49.59 a bar­rel in New York. Brent crude, the in­ter­na­tional stan­dard, picked up 58 cents to close at $52.36 a bar­rel in Lon­don. In other en­ergy trad­ing, whole­sale gaso­line fell 2 cents to $1.64 a gal­lon, heat­ing oil rose 2 cents to $1.66 a gal­lon and nat­u­ral gas held steady at $2.81 per 1,000 cu­bic feet.

Bond prices inched lower. The yield on the 10-year Trea­sury note rose to 2.27 per­cent from 2.25 per­cent.

Gold fell $1 to $1,278.40 an ounce. Sil­ver de­creased 3 cents to $16.73 an ounce. Cop­per stayed at $2.88 a pound.

AP/RICHARD DREW

Traders Gre­gory Rowe (from left), Tommy Ka­likas and spe­cial­ist Ed­ward Log­gie work Wed­nes­day on the floor of the New York Stock Ex­change, where the Dow Jones in­dus­trial av­er­age closed above 22,000 for the first time.

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