AAPL Split has Wall Street Abuzz

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The news of Appleis plan to split its stock this month has Wall Street abuzz. In a late-morning article, Reuters claims that the market was "lifted by gains in semiconductors and Apple Computer, Inc.is announcement that its stock will split."

In the wake of the 2-for-1 split announcement, AAPL is up US$2.85, or 3.64% to $81.21 at midday on heavy volume.

Wall Street news outlets are balancing the Apple news against Dellis fourth-quarter financials, reported yesterday. Even though Dell beat Street earnings expectations, their revenue and sales projections were disappointing.

Meanwhile, S&P took a moment to reiterate its "Hold" rating on Appleis stock. BussinessWeek Online cites analyst Megan Graham-Hackett, who "expected such a split" but believes "nothing in Appleis story has fundamentally changed." Ms. Graham-Hackett also expressed concern that iPod sales growth -- and Appleis valuation, in tandem -- would peak. "However," she concludes, "we think the opportunity to leverage iPod success into new markets make the shares worth holding."

Just before noon the Dow Jones Industrial Average was above 10,816, a 66.87 point gain for the day, while the S&P 500 was just shy of 1,207, a gain of 9.72 points. The Nasdaq was just under 2,073, for a gain of 19.74 points.

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