Apple Weighs Down Markets, But Dow And S&P Remain Positive
- 11 years ago
The Dow and S&P 500 edged higher on Tuesday (January 15) after stronger-than-expected retail data, though tech heavyweight Apple dragged on the market for a third day.
Apple was the biggest weight on both the S&P 500 and Nasdaq 100 after reports on Monday of cuts to orders for iPhone parts. Shares declined 3.2 percent to $485.92 (USD) and closed below $500 for the first time since February.
Retail stocks advanced after a government report showing retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. A separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.
Among retailers, American Eagle Outfitters Inc gained 4.8 percent to $20.58 and Gap Inc rose 3.4 percent to $32.46. The Morgan Stanley retail index advanced 1.5 percent.
Express Inc surged 23.8 percent to $17.40 after the apparel retailer raised its fourth-quarter and full year 2012 outlook.
The Dow Jones industrial average was up 27.57 points, or 0.20 percent, at 13,534.89. The Standard & Poor's 500 Index was up 1.66 points, or 0.11 percent, at 1,472.34. The Nasdaq Composite Index was down 6.72 points, or 0.22 percent, at 3,110.78.
Apple's stock has lost about 7 percent in the last three sessions and is down 8.7 percent since the start of the year.
Also keeping investors on edge is the looming debt ceiling debate. On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.
Resolving the debt ceiling is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.
An expected lackluster earnings season, too, kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.
Dell Inc shares added to Monday's gains, ending up 7.2 percent to $13.17 after sources said talks to take the computer maker private are in an advanced stage.
On the down side, shares of Facebook dropped 2.7 percent to $30.10. The company unveiled a "graph search" feature that CEO Mark Zuckerberg said would help its billion-plus users sort through content within the social network and its content feeds.
Volume was roughly 5.8 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.
Advancers outpaced decliners on the NYSE by about 17 to 12 and on the Nasdaq by about 13 to 11.
Apple was the biggest weight on both the S&P 500 and Nasdaq 100 after reports on Monday of cuts to orders for iPhone parts. Shares declined 3.2 percent to $485.92 (USD) and closed below $500 for the first time since February.
Retail stocks advanced after a government report showing retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. A separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.
Among retailers, American Eagle Outfitters Inc gained 4.8 percent to $20.58 and Gap Inc rose 3.4 percent to $32.46. The Morgan Stanley retail index advanced 1.5 percent.
Express Inc surged 23.8 percent to $17.40 after the apparel retailer raised its fourth-quarter and full year 2012 outlook.
The Dow Jones industrial average was up 27.57 points, or 0.20 percent, at 13,534.89. The Standard & Poor's 500 Index was up 1.66 points, or 0.11 percent, at 1,472.34. The Nasdaq Composite Index was down 6.72 points, or 0.22 percent, at 3,110.78.
Apple's stock has lost about 7 percent in the last three sessions and is down 8.7 percent since the start of the year.
Also keeping investors on edge is the looming debt ceiling debate. On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.
Resolving the debt ceiling is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.
An expected lackluster earnings season, too, kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.
Dell Inc shares added to Monday's gains, ending up 7.2 percent to $13.17 after sources said talks to take the computer maker private are in an advanced stage.
On the down side, shares of Facebook dropped 2.7 percent to $30.10. The company unveiled a "graph search" feature that CEO Mark Zuckerberg said would help its billion-plus users sort through content within the social network and its content feeds.
Volume was roughly 5.8 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.
Advancers outpaced decliners on the NYSE by about 17 to 12 and on the Nasdaq by about 13 to 11.