2013.09.1105:33:53UTC+00U.S. stocks emerge higher on Chinese economy, Syria proposal

U.S. stocks surged, lengthening the longest gaining streak for the Standard & Poor’s 500 Index since July, as data showed China's economy is developing in the middle of indications of easing tensions over Syria.

Goldman Sachs Group Inc., Visa Inc. and Nike Inc. soared more than 2.1 percent as the three firms will be added to the Dow Jones Industrial Average replacing Bank of America Corp., Hewlett-Packard Co. and Alcoa Inc.. Apple Inc. plunged 2.3 percent as the world’s largest technology firm revealed new iPhone models.

Russian Plan

President Barack Obama asked Democratic senators to delay a vote on authorizing military strikes to allow time for talks on eliminating Syria’s chemical weapons, lawmakers said today. France said it will submit a Russian-backed plan to confiscate Syria’s chemical weapons to the United Nations, as Interfax reported that Bashar al-Assad’s government accepted the proposal. Obama is scheduled to outline his intentions on Syria in a speech at 9 p.m. tonight in Washington.

Volatility Index

The Chicago Board Options Exchange Volatility Index (VIX), or VIX, declined 7 percent to 14.53. The equity volatility gauge is down 15 percent in September after rallying 26 percent in August, the biggest monthly gain since May 2012.

Dow Members

Goldman Sachs spiked 3.5 percent to $165.14. Nike upgraded 2.2 percent to $66.82 and Visa increased 3.4 percent to $184.59. Hewlett-Packard depreciated 0.4 percent to $22.27. Alcoa backslide 0.3 percent to $8.06. Bank of America boosted with 0.9 percent to $14.61.

Apple Presentation

E*Trade Financial Corp. fly 3.6 percent greater to $17.10, the highest level since February 2011. The online brokerage said its daily average revenue-generating trades rose 5 percent in August compared to the previous month and the stock was upgraded to outperform from neutral at Macquarie Group Ltd.

Apple plunged 2.3 percent down to $494.64. The company unveiled a cheaper $99 version of the iPhone in bright colors and an updated high-end device, in a strategy shift by Chief Executive Officer Tim Cook to reach a broader range of customers around the world as competing devices running Google Inc.’s Android software gain in popularity.

“The competition has caught up and it’s now purely about how quickly it can innovate and drive its own experience forward,” said Benedict Evans, an analyst with Enders Analysis in London.

Apple also said it was adding Japan’s largest carrier, NTT DoCoMo Inc., and that it would have devices available upon introduction in China for the first time. The company is near a deal with China Mobile Ltd., the world’s largest carrier, people familiar with the plans have said.

Urban Outfitters Inc. fell the most in the S&P 500, missing 10 percent to $38.35. The teen-clothing retailer said third-quarter comparable sales so far are growing at a mid-single-digit pace. Janney Montgomery Scott LLC last week estimated the company would report that the sales were running at a “high-single digit” rate.