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By Medha Singh
(Reuters) – The Dow Jones Industrial Average Index lost more than 400 points Monday, while the collapse of Apple's shares affected the technology sector. Conflicting signals about the state of affairs between the United States and China in their trade dispute have kept investors on their guard. .
Apple Inc. shares fell 3.8% after the Wall Street Journal announced that the company had cut production orders in the last three weeks for the three iPhone models launched in September.
The title of the iPhone maker, which has played a major role in the decline of the stock markets for ten years, is down almost 20% from October's record of October following the disappointing sales forecast for the holiday quarter and the poor prospects of many of its suppliers.
The stock was the biggest drag on the technology sector, down 3.3% and the biggest loser in the top 11 sectors of S & P trading in red.
Consumer discretionary stocks fell 2.1% and communications services decreased 2.7%.
"Without FANG's leadership, including Apple, the market will be struggling," said Peter Cecchini, managing director and chief market strategist at Cantor Fitzgerald in New York.
Trading volumes were meager during a shortened week on vacation, before Thanksgiving Thursday and a shorter session on Friday, resulting in slight volatility for the markets, traders said.
Shares of Apple suppliers were also affected, with a drop of between 2.6% and 6%, between Lumentum Holdings Inc., Universal Display Corp., Cirrus Logic Inc. and Skyworks Solutions Inc.
The rest of the FAANG group – Facebook Inc., Amazon.com Inc., Netflix Inc. and Alphabet Inc – has seen a decline of 3% to 4.8%.
The Philadelphia SE Semiconductor Index, which also includes some Apple suppliers, fell 2.6%, extending losses from the previous session after Nvidia Corp's disappointing forecasts weighed on the sector.
"Apple and Nvidia have lost confidence in their management, both over-promising and under-delivered … Rarely, do you see such changes in a holiday week," said Doug Biben, founder and portfolio manager at BCM, Los Angeles.
At 12:59 pm The Dow Jones Industrial Average was down 392.90 points, or 1.55%, to 25,020.32%, the S & P 500 down 40.74 points, or 1.49%, to 2 695.53% and Nasdaq Composite down 185.94 points, or 2.57%, to 7,061.93%.
Over the weekend, leaders in the Asia-Pacific region failed to agree on a statement for the first time in their history at a meeting in Papua New Guinea on between the United States and China.
US Vice President Mike Pence said Saturday in a direct speech that the United States would not give up its trade dispute with China unless Beijing complies with US demands, curbing the United States. commercial optimism aroused Friday by the comments of President Donald Trump.
Boeing Co and Caterpillar Inc., considered trade-sensitive securities, fell 4.8% and 2.5%, respectively.
Falling issues outnumbered defenders for a ratio of 2.46 to 1 on the NYSE and a ratio of 2.59 to 1 on the Nasdaq.
The S & P index posted 26 new highs over 52 weeks and 16 new lows, while the Nasdaq recorded 16 new highs and 123 new lows.
(Report by Medha Singh in Bengaluru, additional report by Sruthi Shankar and Jennifer Ablan, edited by Anil D & # 39; Silva and Arun Koyyur)
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