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By early afternoon in New York, the Dow Jones was trading up 91 points or 0.60% at 15, 282. The broader S&P 500 was also in positive territory, although not faring nearly as strongly as the Dow, rising just 0.12% points. The NASDAQ 100, meanwhile, slid into the red, dragged down by a 5% fall in Apple, the most highly-weighted stock in the index.
Apple’s fall comes a day after the launch of two new versions of its iPhone, with the fairly steep price of the cheaper model, the iPhone C, disappointing investors who had hoped for a more-aggressively priced product to light a fire under sales in emerging markets.
Dow-component Verizon Communications climbed 0.5% after announcing the biggest ever corporate bond issue. The company will offer $49 billion of debt, dwarfing the previous record which was the $17 billion bond offering from Apple earlier this year. Verizon will use the proceeds of the bond sale to finance the purchase of Vodafone’s share in Verizon Wireless.
Wholesale inventories rose just 0.1% month-on-month in July, after the 0.2% drop seen in June, according to a report issued by the US Commerce Department today, as wholesalers continue to hold back on building up stocks in order to keep pace with sluggish sales, which also increased just 0.1% at the wholesale level. The stock-to-sales ratio remained unchanged in July at 1.17.