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Midday Market Update

Stocks Mixed as Syria, Tech Stocks Eyed

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U.S. Market    
Stocks were mixed at midday as investors focused on President Obama's statements in a national address Tuesday night. The president indicated he still believes military air strikes in Syria could be necessary but also that recent diplomatic discussions between Syria and other countries were a reason to postpone a congressional vote to approve military intervention in Syria. 

Separately, wholesale inventories and sales each edged 0.1% higher in July, as an increase in non-durable-goods inventories exceeded a decrease in durables inventories. The inventory/sales ratio remained unchanged from June at 1.17. 

The Dow and the S&P 500 were 0.5% and 0.1% higher at midday. The Nasdaq was down by 0.3%. 

Stocks on the Move
 Apple (AAPL) shares had lost nearly 6% by midday as the markets fully digested the tech giant's unveiling of its new iPhones Tuesday. The iPhone 5C is Apple's low-price-consumer-focused model, while the 5S offers better memory, processing speed, and camera specifications than previous models. However, several Wall Street analysts deem the price of the 5C to be too high for its target market.  Morningstar analysts have concerns about the 5S, as well, saying that the fact Apple is not accepting preorders before the phone goes on sale Sept. 20 might be a sign that supply is constrained, perhaps because of low manufacturing yields on the processor, new fingerprint sensor, or both.

 Verizon Communications' (VZ) shares were flat at midday after the firm launched a $49 billion bond transaction to partially obtain funding for its $130 billion acquisition of its Verizon Wireless stake from  Vodafone Group (VOD), which the companies announced several weeks ago. The issuance is the largest corporate-bond deal in U.S. history, nearly 3 times higher than the previous mark set by Apple. 

Foreign Markets
Stocks in Asia showed little changes Wednesday. The Shanghai Composite was 0.1% higher, while the Hang Seng was 0.2% lower. The Nikkei 225 was flat. 

European stocks were higher, as the Paris CAC and the FTSE 100 had each gained 0.1%, while the DAX was up by 0.6%. 

Kevin O'Shaughnessy does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.