Wednesday, September 11, 2013

Economic Journal - Wednesday, 9/11/2013

(As of 7:16 am PST)
 
Markets are mixed this morning with the Dow higher while the Nasdaq and S&P500 are slightly lower.  Shares of Apple are leading early losses after the tech giant unveiled its newest iPhones yesterday.  The new iPhone 5S seemed to please spectators and analysts alike at its unveiling yesterday, while Apple’s cheaper iPhone, the iPhone 5C, fell short of expectations.  The iPhone 5C, priced at $99 in the US, is Apple’s strategy to increase overall market share and tap into the low-price smartphone market.  Analysts at Bank of America-Merrill Lynch, Credit Suisse, and UBS were disappointed enough to downgrade shares of Apple citing the challenges Apple faces to expanding market share with a phone priced that high.  The stock took a beating at the open with shares falling 5% to $471.  Fears of a military strike on Syria have subsided providing some optimism in the markets the past 48 hours.  President Obama addressed the nation Tuesday evening saying he asked Congress to postpone a vote on Syria while he considers Russia’s diplomatic solution to Syria’s chemical weapons use.  Markets in Asia and Europe were mostly higher on the Syrian news.  Interest rates and the US dollar are slightly lower while oil is up and gold down slightly.  The markets seem to be taking a break today after a week of very strong gains.  September is off to a great start (surprisingly), but expect volatility to pick up as we approach the Fed’s September 18th meeting and the taper returns to the top of global headlines. 

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