By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Apple Inc. and Microsoft Corp.
posted solid gains early Wednesday giving the tech sector a lift as
the broader market edged lower in anticipation of news from the
Federal Reserve.
Apple (AAPL) was up 0.3% at $502.23. UBS analyst Steven
Milunovich upped his price target to $560 from $500, citing
expected higher margins from the upcoming iPhone 5C and potential
gains from a deal with China Mobile.
"We have rejiggered conservative assumptions in our detailed
product model for the expected midrange iPhone 5C," he said in a
note. "Our price assumption increases from $379 to $399 and the
gross margin rises from 32% to 38% on a lower bill of materials,
making the 5C accretive to earnings."
Microsoft's (MSFT) stock added 1% to $31.93, the best performer
on the Dow Jones Industrial Average (DJI) which was off 43 points
as Wall Street braced for the Fed minutes to be released Wednesday
afternoon.
The Nasdaq Composite Index (RIXF) was mostly flat, last down a
fraction at 3,613 even as shares of Google Inc. (GOOG) and Facebook
Inc. (FB) edged higher.
The Philadelphia Semiconductor Index (SOX) shed 0.4%, as shares
of Analog Devices Inc. (ADI) fell 2% after reporting
weaker-than-expected outlook.
Shares of Intel Corp. (INTC) also fell 0.5% to $22.42, while
Texas Instruments (TXN) was down 1.2% at $38.30.
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