Investors see new watch as time to buy Apple

NEW YORK (Reuters) - APPLE (AAPL.NQ)Inc was sharply higher in afternoon trading on Tuesday, moving on heavy volume as the company unveiled a new smartwatch, an item representing a new product category, as had been widely expected.

The stock was one of the S&P 500's biggest gainers on the day, advancing 3.2 percent to $101.56 in its biggest one-day move since April 28. Volume of about 109 million shares was more than double its 50-day average of 49.1 million.

The stock was volatile throughout the tech giant's product launch event, where it also unveiled new versions of its iPhone line, with shares at one point turning flat, though they subsequently rebounded to session highs.

The move helped broader markets. The tech-heavy Nasdaq, after falling almost 0.6 percent on the day, trimmed its losses, trading down 0.2 percent. The S&P also pared its losses as Apple rallied.

Investors were hoping Apple would announce a new product category at the event. While the stock has posted strong earnings and revenue since Steve Jobs, the company's former chief executive, died in 2011, it has struggled to match the blistering growth rates it was known for when it debuted such products as the iPhone, iPad and iPod music player.

(Editing by Nick Zieminski)