The Nasdaq-100 lagged the Dow and S&P 500 a bit in Tuesday’s rally as strength in market heavyweight Apple (NasdaqGS: AAPL) boosted the tech sector while Netflix (NasdaqGS: NFLX) fell 10% to a new 52-week low.
Apple shares were up more than 2% to a 52-week high. The stock has vaulted through $400 a share, and there was market talk Tuesday that Apple could be added to the Dow Jones Industrial Average. Apple is the top holding in PowerShares QQQ (NasdaqGM: QQQ), an exchange traded fund indexed to the Nasdaq-100.
Apple plans to introduce tow new iPhone models this fall, according to a report.
Conversely, Netflix shares were hammered again Tuesday in the wake of the company’s announcement it was splitting its businesses. Netflix is separating its mail and streaming businesses after unveiling pricing changes over the summer. It has renamed the DVD by mail business to Qwikster and added video games.
“We view both efforts as a move to extend the life of the company’s cash cow, which is rapidly becoming a declining business, while clearly separating its growing streaming offering,” said Jefferies analysts in a research note. “We remain cautious on the name short term.”
Over the last two months, customers have been canceling their subscriptions and company shares dropped around 55% from their all time high of $304.79 as Netflix divided the company into two separate operations and raised prices for subscriptions by 60%, according to The Washington Post.
In an attempt to quell the unrest, CEO Reed Hastings offered a half-apology on the Netflix Blog, report Rachel Emma SIlverman and Dana Mattioli for The Wall Street Journal.