US stocks rise; Apple falls after launching 2 iPhones

Members of the media review the new iPhone 5c and 5s during a new product announcement at Apple headquarters on Tuesday, Sept 10, 2013, in Cupertino, California. US stocks rose on Tuesday on better Chinese economic data and easing concerns about Syri
Members of the media review the new iPhone 5c and 5s during a new product announcement at Apple headquarters on Tuesday, Sept 10, 2013, in Cupertino, California. US stocks rose on Tuesday on better Chinese economic data and easing concerns about Syria, despite a fall in Apple shares following the launch of two new iPhones. -- FILE PHOTO: AP 

NEW YORK (AFP) - US stocks rose on Tuesday on better Chinese economic data and easing concerns about Syria, despite a fall in Apple shares following the launch of two new iPhones.

The Dow Jones Industrial Average jumped 127.94 (0.85 per cent) to 15,191.06.

The broad-based S&P 500 increased 12.28 (0.73 per cent) to 1,683.99, while the tech-rich Nasdaq Composite Index put on 22.84 (0.62 per cent) at 3,729.02.

Technology icon Apple, the largest US company by market capitalization, suffered one of the biggest declines among large companies, falling 2.3 per cent after chief executive Tim Cook and other top officials unveiled two new iPhones.

Apple fielded a top-line iPhone 5S and a lower-cost iPhone 5C aimed at competing with rival low-cost smartphones, most of which use Google's Android operating system.

Some analysts expressed disappointment with the launch. Bank of America said the smartphones would have difficulty competing in the lower-end market "unless Apple is willing to give up subsidy/margin, which it doesn't typically do." Meanwhile, the broader market surged to a second straight day of solid gains.

China's industrial production rose in August at its fastest rate in 17 months, according to official data providing further evidence of a pick-up in the world's second-largest economy.

Tuesday's gains came as investors continued to hope that a proposal by Russia to place Syria's chemical weapons under international control could avert a US military strike.

The operator of the Dow index, S&P Dow Jones Indices, announced it would drop Alcoa, Bank of America and Hewlett-Packard from the 30-stock blue-chip index on Sept 23, replacing them with Goldman Sachs, Nike and Visa.

The Dow cited the low stock values of the companies that were dropped and a "desire to diversify the sector and industry group representation of the index." Goldman Sachs rose 3.5 per cent, Nike jumped 2.2 per cent and Visa increased 3.4 per cent. Alcoa slipped 0.3 per cent, Bank of America gained 0.9 per cent and Hewlett-Packard fell 0.4 per cent.

Video streaming service Netflix surged 6.4 per cent following a deal with British cable operator Virgin Media to make the service available to subscribers. A Citi note said the news marked the first time Netflix has been integrated into a pay-TV offering.

Apparel maker PVH, which owns the Tommy Hilfiger and Calvin Klein brands, dropped 5.6 per cent after a full-year earnings forecast came in at US$7.00 per share, below the US$7.14 seen by analysts.

Bond prices fell. The yield on the 10-year Treasury rose to 2.96 per cent from 2.90 per cent on Monday, while the 30-year increased to 3.89 per cent from 3.84 per cent. Prices and yields move inversely.