Apple Sets All-Time High as Trade Talks Progress
Apple's stock set a new all-time high Friday as investors expressed optimism that the U.S. and China will reach an agreement in their protracted trade war.
Earlier Friday Trump said "good things" are happening in terms of trade talks and that he planned to meet with China's Vice Premier Liu He later in the day.
Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days. I will be meeting with the Vice Premier today. All would like to see something significant happen!— Donald J. Trump (@realDonaldTrump) October 11, 2019
Trade talks progress
Following the meeting, Reuters reported Trump told White House reporters China and the U.S. are close to ending the 15-month long trade war but that it could take as long as five weeks for a deal to be drafted up.
That was enough to send Apple's stock skyrocketing, ending the trading session up 6% to $236.21. It surpassed its all-time high of $233.47 set in October of 2018. Apple ended the trading session Friday with a market capitalization of $1.06 trillion.
Ending the trade war would be good news for Apple and its legions of investors. It means the company won't have to increase prices or eat the tariffs on $250 billion in goods that Trump vowed to increase from 25% to 30% if an agreement isn't reached.
Apple's 11 doing well out of the gate
In addition to easing trade tensions with China, Apple's stock is benefiting from the launch of its iPhone 11 devices in September. The latest iPhones have resonated with consumers, in large part because of the $699 price point. Reports have surfaced that Apple has told suppliers to increase production by 10% for its latest device. There's also talk it could roll out a lower-priced iPhone SE2 in early 2020 that could appeal to consumers looking to upgrade from the iPhone 6.
On top of all that, Apple is launching Apple Arcade and Apple TV Plus, its new subscription services that are priced low enough to undercut rivals.
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