Apple gains power Dow past 22,000
Apple’s shares push index to new high on the back of surprisingly strong quarterly results
Apple’s surprisingly strong quarterly results and forecast pushed the iPhone maker’s shares to a record high, and helped push the Dow Jones Industrial Average through the 22,000 ceiling for the first time. Phootgraph: Thomas Peter / Reuters
The Dow Industrials breached the 22,000 mark for the first time on Wednesday, helped by a rally in Apple’s shares.
Apple’s surprisingly strong quarterly results and forecast pushed the iPhone maker’s shares to a record high overnight, putting the Dow Jones Industrial Average on track to breach the 22,000 mark when the market opened.
And the index took just minutes to break through that ceiling.
Apple’s shares were up 5.5 per cent at $158.33 in premarket trading, a lewvel that would have added another $43 billion to the market capitalisation of the world’s most valuable company.
In the event, shares in the tech gorup were trading at just over $150 ine arly trade, up less than 1 per cent. However, that was enough to support a new high for the index.
Apple stock has gained nearly 30 per cent this year and closed at $150.05 on Tuesday. “The Appleverse is expanding with all segments growing,” UBS analyst Steven Milunovich said.
At least three brokerages raised their price targets on the stock, with Barclays making the most bullish move by raising its price target by $23 to $146. The median price target on the stock is $165. The company’s shares closed at $150.05 on Tuesday.
“There is no reason for opportunistic investors to trek to the sidelines given the June-quarter print and Sept-quarter guide,” Barclays analyst Mark Moskowitz wrote in a client note.