US STOCKS-Wall St lower as Apple drag outweighs trade, jobs data boost
Apple Inc's shares tumbled 6.7 percent, taking its market value below $1 trillion, after the iPhone maker warned sales for the crucial holiday quarter may miss expectations.
That dragged down shares of its U.S. suppliers, mostly chipmakers, and helped pull the technology sector 1.98 percent lower, putting it on track to snap a three-day rally.
"Investors are looking at risk on, but they are doing it in a cautionary approach. They aren't rushing back into big FAANG type names," said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.
"It's something to watch, because you need those names to participate in the overall market if it's going to move much higher as they are big dollar prices."
Earlier in the session, the market got a boost from a Bloomberg report that President Donald Trump wanted to reach a trade deal with China later this month, but a CNBC report said a senior U.S. official called the report untrue.
Jobs data was also healthy, with the Labor Department's closely watched report showing job growth rebounded sharply in October, pointing to further labor market tightening that could encourage the Federal Reserve to raise rates in December.
The prospect of higher borrowing rates was one of the factors, along with tariffs and slowing global growth, that triggered a tumble in the stock markets last month.
At 11:38 a.m. ET, the Dow Jones Industrial Average was down 109.09 points, or 0.43 percent, at 25,271.65, the S&P 500 was down 18.68 points, or 0.68 percent, at 2,721.69. The Nasdaq Composite was down 83.89 points, or 1.13 percent, at 7,350.16.
Apple aside, most earnings reports were strong.
Exxon Mobil Corp climbed 1.4 percent and Chevron Corp gained 3.8 percent after reporting strong profits.
Starbucks Corp jumped as much as 12 percent to a record high after the coffee chain reported strong sales in the United States and China.
"You have other areas of the market that are acting well, but not well not enough to counterbalance the effects of Apple today," SlateStone Wealth's Pavlik said.
Kraft Heinz Co tumbled 10 percent, the most on the S&P, after the company missed quarterly earnings estimates on steep commodity costs.
Declining issues outnumbered advancers for a 1.22-to-1 ratio on the NYSE and for a 1.04-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and four new lows, while the Nasdaq recorded 34 new highs and 28 new lows. (Reporting by Shreyashi Sanyal in Bengaluru, additional reporting by Medha Singh; Editing by Sriraj Kalluvila)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
- READ MORE ON:
- Bangalore Days
- Bangalore University
- Bangalore Mirror
- United States Secretary of State
- United States Department of State
- iPhone 5
- Find My iPhone
- Eastern Time Zone
- United States Department of Labor
- United States of America
- United States
- Apple Inc.
- China–United States relations
- Dow Jones Industrial Average
- Stock market
- Federal Reserve System