On Monday US stocks broadly rose as both the Nasdaq and S&P 500 closed in positive territory for the first time in five sessions whilst the Dow was the exception of the three major indexes falling 0.23% as Apple shares fell 1.34%. The sell-off in Apple was caused by the news on Friday that stated that some of its products will be affected by the proposed tariffs that China is looking to implement. This week the company will kick off a blitz of new products as product launches will being on Wednesday in the Steve Jobs Theatre at the company’s headquarters in Cupertino, California.
Continuing on the theme of tech, which has dominated news headlines for the past week, Facebook shares rose 0.7%, Microsoft gained 1% while Amazon fell 0.67%. Diving into the broader market, semiconductor stocks also rose following a disappointing week as the VanEck Vectors Semiconductor ETF fell 2.9% rallying on Monday to rise 1% led be a 9.2% gain in Advanced Micro Devices (a stock that has soared 190% year to date) and a 3.5% rise in Broadcom.
Tesla shares gained 8.5% after receiving positive commentary from broker Baird and Bernstein that the electric carmaker was on track to be profitable and cash flow positive in the second half of next year. Nike shares rose 2.2% following a report that suggested the retailer’s Labour Day sales rose.
However, it wasn’t all positive news in the market as Alibaba shares fell 3.7% after the company released a statement saying Jack Ma will step down as chairman in one year. United Health shares also fell 3.19% after receiving a broker downgrade from Citigroup. The news weighed heavily on its peers as CVS Health Corp and Anthem Inc. fell 2.13% and 3.42%, respectively.
Chart of the Day: Tesla Inc. (TSLA) Daily Chart