Apple slip sees Wall Street end good week with a dip

Apple slip sees Wall Street end good week with a dip

US stocks slipped as Apple absorbed its worst loss in more than four years.

Thanks to gains over the previous three days, the S&P 500 index finished with its biggest weekly increase since March.

Apple, the world's largest technology company, forecast weak revenue in the current quarter and startled investors by saying it will stop disclosing quarterly iPhone sales.

That pulled technology stocks lower.

Other high-growth stocks held up well after the US and China said they had made some progress in trade talks, and Asian indexes surged on reports that China's government plans to cut taxes.

The Department of Labour said employers added 250,000 jobs in October, with no sign that hiring was going to slow down.

The proportion of Americans with jobs is at its highest level since January 2009, and hourly wages also grew by the most since then. Along with high consumer confidence, those are all good signs for economic growth and consumer spending in the months to come.

Bond yields surged following the strong jobs report as investors bet on continued economic growth, which would push the Federal Reserve to raise interest rates more quickly.

"It clearly was a good report," said David Lefkowitz, senior equity strategist Americas at UBS Global Wealth Management.

Growth in wages, while stronger than anything that's been reported recently, was about what investors were expecting, Mr Lefkowitz said.

That is important because investors are still sensitive to signs that inflation could flare up, forcing the Federal Reserve to be more aggressive in raising rates.

If inflation grows moderately, as it appeared to in October, that is not as likely.

The S&P 500 index slid 17.31 points, or 0.6%, to 2,723.06.

The Dow Jones Industrial Average fell 109.91 points, or 0.4%, to 25,270.83.

The Nasdaq composite, which has a high concentration of technology companies, lost 77.06 points, or 1%, to 7,356.99.

The Russell 2000 index of smaller-company stocks rose three points, or 0.2%, to 1,547.98.

Stocks had surged over the previous three days and finished the week 2.4% higher.

They skidded in October, suffering their worst monthly loss in seven years.

The S&P 500 will have to rise another 7.6% to match the all-time high it reached on September 20.

Apple fell 6.6% to 207.48 dollars.

More on this topic

Modest day of trading as Wall Street breaks early for ChristmasModest day of trading as Wall Street breaks early for Christmas

Pound jumps after Irish-UK meetingPound jumps after Irish-UK meeting

Cut shares exposure, says €2.2tn top adviserCut shares exposure, says €2.2tn top adviser

All Irish firms selling into Britain hit by sterlingAll Irish firms selling into Britain hit by sterling

More in this Section

Free trade agreement ‘very difficult if UK does not comply with EU standards’Free trade agreement ‘very difficult if UK does not comply with EU standards’

Microsoft pledges to remove entire historical carbon footprint by 2050Microsoft pledges to remove entire historical carbon footprint by 2050

''Politically-sensitive'' costs of rents and health insurance rise''Politically-sensitive'' costs of rents and health insurance rise

C&C shares sink on news of CEO exitC&C shares sink on news of CEO exit


Lifestyle

Bryan Stevenson is the American civil rights lawyer who provided the inspiration for the newly-released film Just Mercy. Esther McCarthy spoke to him in IrelandReal-life lawyer Bryan Stevenson on inspiring Just Mercy

So I’ve booked my holidays. And before you ask, yes, I’m basing it around food and wine. I’ll report back in July, but I thought readers might be interested in my plan should you be thinking about a similar holiday.Wines to pick up on a trip to France

Esther N McCarthy is on a roll for the new year with sustainable solutions, cool citruses and vintage vibes.Wish List: Sustainable solutions, cool citruses and vintage vibes

They have absolutely nothing really to do with Jerusalem or indeed with any type of artichoke, so what exactly are these curious little tubers?Currabinny Cooks: Exploring the versatility of Jerusalem artichokes

More From The Irish Examiner