Shares of Apple (Nasdaq: AAPL), the world's most valuable technology company, recovered from their Monday loss in early Tuesday trading and kept the momentum growing.
By the close, Apple rose to $609.70, up $29.57, or about 5.1 percent. On Monday, shares fell 4 percent to $580.13, their first dip below $600 since March 30. Having set a record high of $644 recently, the decline was 9.91 percent, just shy of what might be a correction, if the declined had reached 10 percent.
The swoon lowered the value of the Cupertino, Calif., electronics company to only $540.9 billion and chopped the value of CEO Tim Cook's 1 million restricted stock units by $4 million. But Tuesday's surge raised the respective values to $569 billion and $609.1 million.
Apple shares fell Monday on rumors of sharply discounted new products to challenge the iPad, priced at $499, that might erode the powerhouse company's fat gross margins, as well as unspecified competition. Apple had no comment.
At Cowen & Co., analyst Matthew Hoffman repeated his Outperform rating on Apple and boosted the number of iPhone sales the company will report in the second quarter by 5 million, to 32 million.
The company is scheduled to announce second-quarter earnings next Tuesday. The comoany was sued by the U.S. Department of Justice last week for allegedly conspiring the fix the price of ebooks. The company also announced it will reinstitute a divdend later this year as well as replace its share buyback campaign with a bigger one.
Apple's dip, for the fifth consecutive session, also knocked several major stock indexes, including the S&P 500 Index and the Nasdaq 100 Index because of its proportion.
Stocks rose mainly after the International Monetary Fund boosted its projections for U.S. economic growth this year. The S&P 500 rose nearly 1.6 percent to 1390.78.
David Zielenziger is a veteran editor and journalist who has written for newspapers including the Baltimore Sun, Asian Wall Street Journal and EETimes, as well as for...