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Apple’s market value ends above $3tr for first time
REUTERS
Apple Inc’s stock market value ended a trading session above $3 trillion for the first time on Friday, lifted by signs of improving inflation and bets that the iPhone maker will successfully expand into new markets.
Shares of the world’s most valuable company jumped 2.3 per cent to $193.97, giving it a market capitalization of $3.05 trillion, Refinitiv data showed.
It was Apple’s fourth straight record high close.
The Cupertino, California company’s market capitalization briefly peaked above $3 trillion in intraday trading on January 3, 2022 before closing the session just below that mark.
Heavyweight growth stocks including Apple, Nvidia Corp and Tesla Inc rose sharply after a Commerce Department report showed the Personal Consumption Expenditure price index advanced less in May than in April, reflecting progress in the Federal Reserve’s fight against inflation.
Apple has surged 49 per cent so far in 2023 in a rally by several of Wall Street’s most valuable companies, fueled by bets that the Fed is nearing the end of its campaign of interest rate hikes, and by optimism about the potential for artificial intelligence.
Apple’s most recent quarterly report in May showed revenue and profits fell but still beat analysts’ expectations. Along with a steady track record of stock buybacks, the financial results reinforced its reputation as a safe investment at a time of global economic uncertainty.
“It’s a testament to one of the greatest publicly traded companies that’s ever existed. It continues to grow and diversify its revenue streams, has shareholder-friendly management, buys back shares, throws off a dividend and has a fortress balance sheet with strong and defendable cash flows,” said Art Hogan, chief market strategist at B Riley Wealth.
Apple’s $3 trillion milestone follows the June 5 launch of a pricey augmented-reality headset, its riskiest bet since the introduction of the iPhone more than a decade ago.
The stock has climbed about 7 per cent since then, compared to the S&P 500’s 4 per cent rise.
Recent gains in Apple’s shares have outpaced analysts’ estimates for the company’s future earnings. It is now trading at over 29 times expected earnings, its highest since January 2022, according to Refinitiv data. That compares to a median PE ratio of about 13 for the S&P 500 technology index.
Four other US companies have valuations of more than $1 trillion - Alphabet Inc, Amazon.com Inc, Nvidia and Microsoft Corp, which follows Apple with a market value of $2.5 trillion.
Shares of Tesla and Meta Platforms Inc have more than doubled this year, while a 190 per cent gain in shares of Nvidia has catapulted the chipmaker into the trillion-dollar club.

Eurozone inflation

falls in June
AFP, Brussels
Eurozone inflation eased further in June as energy prices fell but those of food and drinks remained elevated, official data showed Friday.
Consumer prices rose by 5.5 per cent this month, down from 6.1 per cent in May, according to the European Union’s Eurostat agency.
The drop was slightly better than the 5.6 per cent inflation rate forecast by analysts surveyed by Bloomberg.
Since consumer prices remain above the European Central Bank’s two-percent target, analysts expect there will likely be no let-up in more interest rates hikes. Food and drink prices rose by 11.7 per cent in June compared with 12.5 per cent in May, according to Eurostat.
The agency said energy inflation in the eurozone dipped further into negative territory in May, falling by 5.6 per cent in June after recording a drop of 1.8 per cent in May.
Core inflation, which strips out volatile energy, food, alcohol and tobacco prices, was up slightly to 5.4 per cent in June from 5.3 per cent in May.
Core inflation is the key signal for the Frankfurt-based ECB.
Inflation data this week offered a mixed picture, but also allowed some to make predictions that high consumer prices had not become so entrenched in Europe.
The annual inflation rate in Germany, Europe’s biggest economy, rose to 6.4 per cent in June, up from 6.1 per cent in May, preliminary official figures showed on Thursday.
But Spain recorded a slowdown in the annual rate of inflation to 1.9 per cent in June thanks to lower fuel, electricity and food prices.
Among the 20 countries that use the euro, Luxembourg had the lowest inflation rate, at 1.0 per cent in June, Eurostat said.
According to other Eurostat data published Friday, the unemployment rate in the eurozone remained stable in May at 6.5 per cent.