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Stock Market Today: Dow rides tesla, big tech gains higher; Apple event eyed

Published 09/11/2023, 04:12 PM
© Reuters -- The Dow closed higher Monday, as tesla and big tech combined to ensure stocks started the week on the front foot ahead of Apple's eagerly anticipated iPhone 15 launch due Tuesday and inflation data later this week. 

The Dow Jones Industrial Average added 0.3%, 88 points, Nasdaq rallied 1.2%, and the S&P 500 rose 0.7%, the S&P 500 rose 0.7%.

Tesla accelerates on autonomous driving software optimism

Tesla (NASDAQ:TSLA) rose more than 10% after Morgan Stanley upgraded the electrical vehicle maker to overweight from equalweight, on optimism that its supercomputer Dojo -- which can process data from Tesla vehicles on the road to train AI models for self-driving cars -- could boost adoption of ‘robotaxis’ and network services, boosting Tesla’s market value by as much as $500 billion.

“We believe that Dojo can add up to $500bn to Tesla's enterprise value, expressed through a faster adoption rate in Mobility (robotaxi) and Network Services (SaaS),” Morgan Stanley analysts wrote in a client note.

Qualcomm shines bright despite dull day for chips; Apple iPhone launch eyed

Qualcomm Incorporated (NASDAQ:QCOM), up about 4%, was the outperformer among chip stocks after the chipmaker expanded its deal to supply Appel with 5G modems for its iPhones through 2025.

The deal comes just a day ahead of Apple (NASDAQ:AAPL)'s launch event due Tuesday at 1pm ET when the company is expected to unveil the new the iPhone 15 that some on Wall Street expect spur a slew of upgrades from customers.

Wedbush estimates that about 25% of Apple’s 1.2 billion installed base has not upgraded their iPhone in 4 years, paving the way for Apple to capitalize on the opportunity by raising prices for the iPhone 15 pro and max models, setting up for a new "mini super cycle.”

Media stocks rise as Disney, Charter end cable-fees beef

Disney and Charter Communications (NASDAQ:CHTR) agreed to a deal to resolve a dispute over cable fees that had blocked Charter’s cable customers from watching several Disney-owed channels including ESPN and ABC this month.

Charter, which had been pushing for concessions allowing its cable customers to choose which networks it wanted as part of their service, didn't close financial terms of the deal, but said some of its Spectrum customers would have access to  ad-supported apps Disney+ and ESPN+ as part of their packages.

The move boosted sentiment on media stocks including Fox Corp Class A (NASDAQ:FOXA), Paramount (NASDAQ:PARA) and Warner Bros Discovery Inc (NASDAQ:WBD). 

Deal News: JM Smucker in 5.6 billion deal to buy Hostess

JM Smucker (NYSE:SJM) struck a deal Monday to buy Hostess Brands (NASDAQ:TWNK) for $34.25 a share in a deal that valued that latter at about $5.6 billion. Smucker fell 6%, while Hostess jumped 19% to fresh 52-week high.

JM Smucker came out on top amid competition from General Mills (NYSE:GIS) to buy the Hostess Brands, which returned to public markets in 2016 after going private. 

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