Apple Inc. (NASDAQ:AAPL) announced its latest products on Tuesday and soon after this the early rally in iPhone makers share was seen fading. This led to a fall in the stock market. The market was also down because of the negative news that came from Home depot and McDonald’s.
Apple shares volatile after the launch
On Tuesday, the trading was primarily driven by Apple as there was hardly any other important event or news. At the event, Apple Inc. (NASDAQ:AAPL) revealed the iPhone 6, iPhone 6 Plus and a new OS known as iOS 8. A smart watch known as iWatch has also been released. A payment system has also been introduced, which is expected to replace the credit and debit cards used conventionally. The investors welcomed the new Apple iPhone with its iterations and also the payment system.
The newly unveiled Apple products helped the company’s stock to surge by 4.8%. However, it appeared that the investors were not too happy with the smart watch, which could function only when the iPhone is nearby. The watch has been priced at $350, and will be available for sale next year. This led the Apple Inc. (NASDAQ:AAPL) rally to fade quickly.
“I don’t know if they’re swimming up the right river with this watch,” said Dan Morgan, a senior portfolio manager at the Synovus Trust Company, and an Apple investor. “It looks like an add-on product, not something that has the potential to be a phenomenon.”
Impact on index and on other tickers
The biggest one-day drop of the month was experienced by the Dow Jones industrial average on Tuesday, when it declined by 97.55 points equivalent to 0.6% at 17,013.87. A decline of 0.7% was noted in the Standard & Poor’s 500-stock index, which dropped by 13.10 points to 1,988.44. A loss of 0.9% or 40 points was noted in the Nasdaq composite index after which it declined to 4,552.29.
Apple ended the day down 37 cents, or 0.4 percent, to $97.99. Every time a new product is announced by Apple it goes volatile. The decline in Apple’s stock was modest. The new payment system introduced led to a 2.8% decline in eBay as investors felt that it could give competition to eBay’s PayPal division.