(Updates from 11:18 a.m. ET with closing information.)
Analyst Steven Milunovich raised his price target to $560 and kept his "buy" rating, citing increased chances of a deal with China Mobile (CHL), the world's largest carrier. With approximately 100 million 3G users, such a deal would have enormous potential. "We expect a deal to be struck with China Mobile before year end," Milunovich wrote in his note.
He expects an additional 17 million iPhones sold via China Mobile in fiscal 2014, with 70% of them being the iPhone 5C and the remaining 30% being the iPhone 5S.
Facebook (FB ) shares rose 0.57% to $38.63 following Mark Zuckerberg's announcement of plans to connect everyone in the world to the Internet. Zuckerberg unveiled a partnership called Internet.org aimed at providing Internet access to the roughly 5 billion people who don't have it. Nokia (NOK ), Qualcomm (QCOM ), Samsung, Ericsson (ERIC ), MediaTek and Opera are joining Facebook in the initiative. Arguing that connectivity is a human right, Zuckerberg described how Internet access provides the "foundation of the global knowledge economy" and how worldwide Internet access would "not only improve billions of lives, but...also improve our own as we benefit from the ideas and productivity they contribute to the world."
Shares of Hewlett-Packard (HPQ ) dropped 1.01% to $25.58 despite an increase in its price target, ahead of quarterly earnings. Analyst Keith Bachman of BMO Capital Markets raised HP's target price from $24 to $30, citing strong margins and cash flows in the printer sector, stable margins in the Enterprise group, and growth in the networking market. Bachman also pointed to software as a source of profits despite its small revenue base. "Longer term, we think that HP's software business can do better given HP's approach of selling more solutions to its clients instead of focusing on selling discrete components of its portfolio," he wrote in the note. "We think that HP will likely emulate IBM in this approach by focusing more on services led approach which can pull in more software and hardware revenues. In addition, we expect HP to complete more software acquisitions." HP reports its third-quarter results today after the bell. Though the PC maker is still undergoing a massive restructuring, analysts are looking for revenue of $27.29 billion and earnings of 86 cents a share.
Closing prices: AAPL closed 1.3% higher at $502.36, FB was unchanged at $38.32 and HPQ fell 1.8% to $25.38. -- Written by Laura Berman in New York Follow @LauraBermanTST