US open: Apple pushes Dow back above 26,000

Trading on Wall Street got off to a positive start on Thursday with shares of Apple leading the way as investors welcomed the latest developments between the US and China on the trade front.

At 1540 BST, the Dow Jones Industrial Average was up 0.39% to 26,100.21, while the S&P 500 was ahead 0.34% to 2,898.60 and the Nasdaq Composite was 0.58% firmer to 8,000.25.

Trade relations remained in focus after US officials invited China to new trade talks, which the Chinese foreign ministry welcomed.

Lukman Otunuga, a research analyst at FXTM, said: "A collective sigh of relief across financial markets and investors has been noticed following the latest reports that the United States has proposed fresh trade talks with China."

"While this is not the first time there has been optimism around negotiations between Washington and Beijing," said Otunuga. "The talks are overall a positive step that both sides are willing to diffuse tensions between the two largest economies in the world."

In corporate news, Apple was the number one advancer on the Dow. Shares were up 2.19% in early trade after unveiling its new products on Wednesday at its annual product launch event in Cupertino, California.

The tech giant unveiled three new iPhones and announced its next-generation Apple Watch series 4.

RBC Capital Markets said there was "something for everybody", with the new product announcements highlighting the company's goal of addressing a broader consumer market while focusing on improving average selling prices and profitability.

"We believe Apple's current stock price creates an attractive entry point for investors to benefit from its ability to generate revenue and earnings per share growth in FY18," RBC said.

Meanwhile, shares in grocery chain Kroger tumbled 9.17% at the bell after the release of its second-quarter earnings.

On the data front, the rate of gains in US consumer prices slowed last month, as medical commodities and services prices dipped.

Apparel and commodity prices outside of food and energy also fell.

According to the Bureau of Labor Statistics, headline consumer prices rose at a month-on-month clip of 0.2%, which pushed the annualised rate of gains to 2.7%, which was down from 2.9% in the month before.

Economists had penciled-in a smaller slowdown to 2.8%.

Elsewhere, the number of Americans filing for unemployment benefits unexpectedly dropped last week, according to data from the Labor Department.

US initial jobless claims fell by 1,000 from the previous week’s revised level to 204,000, beating expectations for an increase to 210,000 and marking the lowest level since 6 December 1969. The previous week’s level was revised up by 2,000 to 205,000.

Meanwhile, the four-week moving average declined by 2,000 from the previous week’s average to 208,000, also marking the lowest level since 6 December 1969