Wall St. rises with Apple, biotechs, but Fed jitters remain

As has happened so many times before, Apple announces a new product line to a less than enthusiastic reception ... and its stock plummets.  Within days or weeks, the world discovers it had misjudged the tech giant, that these new products might just change the world ... and the stock soars.  But this time it didn't take days or weeks.  Yesterday, the unenthusiastic reception of the new iPhone and Apple TV dissed Apple's stock a stunning 2% for a one-day loss.  Today investors sent their mea culpas to recoup all of yesterday's losses and then some with Apple up 2.2% and the entire biotech index rising 1.9%.  But it was still one hell of a bumpy and wild ride today, with the index bouncing around in a 230 point range before finally closing up 77 points, now recouping fully half of Tuesday's big rally.  There are still plenty of jitters around China and next week's Fed meeting.  Even though there is still an abundance of volatility and uncertainty to justify believing the Fed will not yet raise rates, the fact that the labor markets are getting close to the Fed's targets has given investors pause.  I have stated frequently my own position that there is no chance of a rate hike this month.  And though there are many who agree with me, there are some who do not -- not at all!  That's why I can't wait until this time next week.  Who's going to be proven right? ...  All these other geniuses ... or this lowly blogger?  At 6.8 billion, trading was still on the light side compared to the last four weeks.

Markets | Thu Sep 10, 2015 6:19pm EDT

Wall St. rises with Apple, biotechs, but Fed jitters remain

BY CAROLINE VALETKEVITCH

DJ:  16,330.40  +76.83       NAS:  4,796.25  +39.72        S&P:  1,952.29  +10.25

REUTERS/BRENDAN MCDERMID

U.S. stocks ended higher on Thursday in another day of broad swings as investors showed nervousness ahead of next week's much-anticipated Federal Reserve meeting, but gains in Apple and biotech shares supported the day's advance.

Apple's shares (AAPL.O) rose 2.2 percent to $112.57, rebounding from losses the day before when the iPhone and iPad maker unveiled new offerings.

Biotech also boosted the market, with Gilead (GILD.O) up 3.3 percent at $107.25, giving the second-biggest boost to the S&P 500 and Nasdaq after Apple. The Nasdaq biotechnology index .NBI was up 1.9 percent.

The day's gains follow a 1-percent market decline on Wednesday and weeks of volatility largely tied to worries about a slowdown in Chinese growth and its impact on the globaleconomy. Investors also have been nervous about next week's Fed meeting and whether the central bank will decide to raise interest rates for the first time in nearly a decade.

"It's this tug of war, and that gives big moves going both ways at the moment. Obviously investors are very unsettled with regard to their conviction," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

"It certainly doesn't seem as though we have a groundswell of demand coming into stocks that can push the market up significantly."

The Dow Jones industrial average .DJI rose 76.83 points, or 0.47 percent, to 16,330.4, the S&P 500 .SPX gained 10.25 points, or 0.53 percent, to 1,952.29 and the Nasdaq Composite.IXIC added 39.72 points, or 0.84 percent, to 4,796.25.

Nine of the 10 major S&P sectors were higher, led by the healthcare .SPXHC, up 0.9 percent, and technology .SPLRCT, up 1 percent.

Adding to uncertainty surrounding the Fed's next meeting, data showed the U.S. labor market appeared to gain momentum in early September as fewer Americans filed for weekly unemployment benefits, while another report showed import prices fell last month.

Influential fund manager David Tepper of Appaloosa Management told CNBC that corporate earnings may not rise as much as expected and he was not overly bullish on stocks next year.

Krispy Kreme Doughnuts (KKD.N) fell 11.7 percent to $15.65, a day after the doughnut chain cut its 2016 profit forecast.

Also, shares of Avon Products (AVP.N) fell 9.5 percent to $4.10, reversing earlier gains. The Wall Street Journal reported the company was in talks with private equity firms about an investment through a stake sale in the struggling company.

Lululemon Athletica (LULU.O) was down 16.4 percent at $53.54. The yogawear retailer's gross margins continue to be under pressure as it spends more on product development and sourcing.

NYSE advancing issues outnumbered declining ones 1,623 to 1,398, for a 1.16-to-1 ratio; on the Nasdaq, 1,656 issues rose and 1,155 fell for a 1.43-to-1 ratio favoring advancers.

The benchmark S&P 500 index posted 1 new 52-week high and 8 lows; the Nasdaq recorded 28 new highs and 62 lows.

About 6.8 billion shares changed hands on U.S. exchanges, below the 8.1 billion daily average for the past 20 trading days, according to Thomson Reuters data.