Apple (NasdaqGS: AAPL) shares rallied above $500 on Wednesday to help Nasdaq-100 and technology sector ETFs outperform the broader stock indices. The stock gained more than 2% on anticipation for the latest version of the iPhone and a bullish analyst call.
PowerShares QQQ (NasdaqGM: QQQ) was up 1.1% in afternoon trading. Apple is the largest holding in the actively traded Nasdaq-100 ETF.
Apple sent out invitations to a Sept. 10 event where it will unveil new models of the iPhone and release an update to Apple’s iOS mobile operating system, Bloomberg reported.
Separately, Cantor Fitzgerald started coverage of Apple with a buy recommendation and target price of $777, according to MarketWatch.
“In our view, Apple is on the verge of an extended product cycle that we believe will include a refresh of existing products, increased penetration within existing device categories and entirely new market opportunities,” said Brian White at Cantor in the report.
Yet Apple has weighed on tech ETFs this year. The stock is off 6.6% year to date compared with a gain of 16.6% for the S&P 500, according to Morningstar performance data.
“Apple’s stock has been challenged this year … however, we believe the stock is in the midst of a recovery,” White wrote. [Watch Your Apple Exposure in Growth ETFs]
Full disclosure: Tom Lydon’s clients own QQQ and AAPL.