[Chart courtesy of MarketWatch.com]
1. Moving the Markets
Equities ended a bit lower Tuesday after starting off in positive territory as investors digested news that Apple could owe back taxes in Ireland and continued to focus on what the Federal Reserve’s next move on interest rates might be as Friday’s key jobs report looms.
Wall Street continues to waver on whether the Fed will hike interest rates for the first time this year, after Fed Chair Janet Yellen said Friday that the case for a rate increase had “strengthened” recently. There is a camp on Wall Street that believes the Fed will move at its Sept. 20-21 meeting if the August jobs report, set for release Friday, comes in strong.
Also weighing on stocks Tuesday, following Monday’s 108-point Dow gain, was the news surrounding iPhone maker Apple, a stock that has a sizable weighting in all three of the major U.S. stock indexes. The news today was that Apple must pay up to $14.5 billion in back taxes to Ireland, the European Union ruled Tuesday after the bloc’s anti-trust arm concluded that the technology firm was given illegal tax benefits over two decades. Ouch! Apple (AAPL) shares ended the day 0.8% lower, to $106 even.