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Apple, PayPal rise despite stock market sell-off

Tim Cook
Mark Neuling | CNBC
Tim Cook

While the Dow Jones industrial average lost more than 250 points Tuesday and the S&P 500 fell more than 1 percent, Apple and PayPal each gained at least 2.5 percent.

The iPhone maker's stock was the only Dow component in the green and closed 2.55 percent higher after U.S. phone carriers Sprint and T-Mobile reported stronger-than-expected preorders for the iPhone 7, which is set to hit stores Friday.

PayPal Holdings was the best performing S&P 500 stock, closing 2.8 percent higher after details on the company's partnerships with MasterCard and Visa alleviated some investors' concerns.

"While PYPL did not provide updated guidance, we think the strength in the stock was driven by the fact that we shouldn't assume the deals are dilutive to earnings in 2017, which was likely less onerous than what investors are currently assuming," Sanjay Sakhrani, analyst at Keefe, Bruyette & Woods, said in a note Tuesday. KBW has an "outperform" rating on PayPal with a price target of $44.00.

Apple supplier Skyworks was the third-best performer in the S&P 500 with a gain of nearly 1.5 percent.

The iPhone maker saw a flurry of mostly positive news Tuesday. Sprint said preorders as of Tuesday for the new iPhone were four times higher than last year, while T-Mobile said preorders were the highest in its history.

In reviews mostly released Tuesday, smartphone critics gave the new iPhone mostly high marks. Separately, Apple apologized to customers on Tuesday after some users reported problems with the iOS 10 update.

Just 10 S&P 500 components closed higher Tuesday, as the three major averages ended more than 1 percent lower, weighed by sharp declines in oil prices and concerns the U.S. Federal Reserve might raise rates sooner rather than later.