Stocks slide as weakness hits Apple and Amazon.com

The Dow falls 52 as some traders take profits ahead of decisions this week from Europe and the Fed. Intel's earnings warning last week weighs on chip stocks. AIG slips after the Treasury says it will cut its stake in half.

By Charley Blaine Sep 10, 2012 12:19PM
Charley BlaineUpdated: 6:40 p.m. ET

Stocks pulled back today -- with most of the selling coming in the last hour of trading -- as investors await key decisions later this week from the Federal Reserve and Germany's highest court.

The Fed meets Wednesday and Thursday to decide if it will engage in a new round of economic stimulus. Germany's Constitutional Court will rule Wednesday on whether it's legal for Germany to participate in the European Central Bank's bond-buying plans to lower interest costs for Italy, Spain and other countries.

At the same time, investors were concerned by a report over the weekend that China’s imports unexpectedly fell and industrial output rose the least in three years. The reports signaled more stimulus may be needed after the government last week said it approved subway and road projects across the nation.

Meanwhile, Intel (INTC), which cut its earnings forecast last week, was a big force in pulling semiconductor stocks lower. Apple (AAPL) and Amazon.com (AMZN) hit all-time intraday highs right after the open but promptly fell -- hard. Copper, steel and aluminum shares were higher on speculation that the Fed will approve a new stimulus plan.

The Dow Jones industrials ($INDU) closed down 52 points to 13,254. The Standard & Poor's 500 Index ($INX) was down 9 points to 1,429. The Nasdaq Composite Index ($COMPX) was off 32 points to 3,104. The Nasdaq-100 Index ($NDX) was down 37 points to 2,788.

Article continues below.
Volume was light with 615 million shares changing hands on the floor of the New York Stock Exchange.

The Dow finished last week at its highest level since Dec. 28, 2008. The S&P 500's finish on Friday was its best since Jan. 3, 2008, and the Nasdaq's Friday close was its best since Nov. 15, 2000.

As the market was closing, the Federal Reserve reported that U.S. consumer credit outstanding fell in July for the first time in 11 months. Much of the decline was due to a 6.8% decline in credit-card debt. But the Fed revised substantially higher its estimate for credit growth in June.

Tuesday, the National Association of Independent Business will report on small-business confidence. Also due are weekly reports on retail sales and a government report on the trade deficit.

Facebook
(FB) CEO Mark Zuckerberg will be interviewed at the TechCrunch blog's annual conference. The interview starts at 2 p.m. PT. Facebook shares fell 17 cents to $18.81 on Monday and are off 50.5% from the $38-a-share sale price in its intial public offering in May.

Futures trading suggests a flat open for stocks on Tuesday.

Apple and Amazon stumble; Intel hit by warning
Technology was the market's weakest sector.

Apple, the biggest influence on the Nasdaq-100 index, was off $17.70 to $662.74 after hitting a new high of $683.29. The company is expected to announce its iPhone 5 at a big media event on Wednesday. There's hope the company will also announce a new iPad, but that now appears to be unlikely.

Notwithstanding the share-price decline, the new iPhone is expected to generate lots of excitement and sales. So much so that the device's introduction could add up to 0.25% to 0.5% to U.S. economic growth in the fourth quarter, according to Michael Feroli, JPMorgan Chase's chief U.S. economist.

Amazon.com was off $2.05 to $257.09 after hitting a new high of $260. Last week, Amazon announced three new models of its Kindle Fire tablet and an upgrade to a fourth.

Intel was off 93 cents to $23.26. The stock is off 7.3% since closing at $25.10 on Thursday. It warned on Friday that third-quarter revenue would be about $1 billion less than expected, as demand for personal computers is weakening, even among corporate users.

"The breakdown in corporate demand is particularly disheartening; it had been a relative bulwark against persistently lousy consumer PC sales," Barron's noted over the weekend.

Intel is down 20.4% since peaking at $29.18 on May 2 and is off 4.3% for the year.

Google (GOOG) fell $5.38 to $700.77. Its close on Friday was a 52-week high.

Energy prices -- New York close



Mon.

Fri.

Month chg.

YTD chg.
Crude oil (-CL)

$96.54

$96.42

0.07%

-2.32%
(per barrel)











Heating oil (-HO)

$3.1668

$3.1489

-0.42%

8.67%
(per gallon)











Natural gas (-NG)

$2.8120

$2.6820

0.46%

-5.92%
(per mil. BTU)











Unleaded gasoline (-RB)

$3.0240

$3.0196

1.72%

13.80%
(per gallon)











Brent crude 

$114.81

$114.25

0.21%

6.92%
(per barrel)











Retail gasoline

$3.8280

$3.8250

-0.03%

16.85%
(per gallon; AAA)












Shares of American International Group (AIG) were down 69 cents to $33.30 after the Treasury Department said over the weekend it will sell $18 billion of AIG stock in a public offering. The move will cut the Treasury's stake by half and make the government a minority shareholder in the insurance giant for the first time since September 2008. The stock had fallen to as low as $32.90 before buying began.

Oil giant BP's (BP) shares rose 11 cents to $42.04 in New York after the compoany agreed to sell its interests in a number of oil and gas fields in the U.S. Gulf of Mexico for $5.55 billion. The buyer is Plains Exploration (PXP), which fell $4.24 to $36.09 on the news.

BP is raising cash -- and lots of it -- to be able to pay off the government for the 2010 Gulf oil spill.

Copper rises on stimulus hopes
Copper (-HG) was a star commodity, rising 3.1 cents to $3.676 a pound on the expectation of stimulus coming from China and the Fed. Freeport-McMoRan Copper & Gold (FCX) was up 28 cents to $39.71. U.S. Steel (X) added 19 cents to $20.70.

Gold (-GC) and silver (-SI) settled down $8.70 to $1,731.80 an ounce and 5.7 cents to $33.63 an ounce, respectively. Both were trading lower afterward in electronic markets.

Crude oil
(-CL) traded as low as $95.34 a barrel on the Chinese news. But it rebounded to finish up 12 cents to $96.54. Brent crude was up 42 cents to $114.67 a barrel.

The national average price of gasoline was $3.828 a gallon, up slightly from Friday, according to AAA's Daily Fuel Gauge Report.

The yield on the 10-year Treasury note rose to 1.683% from 1.661% on Friday.

Stocks wanted to move lower
Nineteen of the 30 Dow stocks were lower today. The leaders were Hewlett-Packard (HPQ) and Verizon Communications (VZ). The laggards were Intel and Bank of America (BAC).

Sealed Air (SEE) and printer R.R. Donnelly (RRD) were the S&P 500 leaders. For-profit education company Apollo Group (APOL) and Teradata (TDC) were the laggards. Only 144 stocks in the index were higher.

Only 18 Nasdaq-100 stocks were higher, led by Green Mountain Coffee Roasters (GMCR) and O'Reilly Automotive (ORLY).

Apollo Group and Intel were the laggards.
 

Short hits from the markets -- New York close



Mon.

Fri.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.1000%

0.100%

11.11%

900.00%
5-year Treasury note 

0.657%

0.638%

10.23%

-20.84%
10-year Treasury note

1.683%

1.661%

7.75%

-10.05%
30-year Treasury bond

2.842%

2.826%

5.89%

-1.63%
Currencies











U.S. Dollar Index

80.343

80.234

-1.07%

-0.22%
British pound

1.5995

1.6021

0.67%

2.94%
(in U.S. $)

 








U.S. $ in pounds

£0.625

£0.624

-0.67%

-2.86%
Euro in dollars

$1.28

$1.28

1.31%

-1.51%
(in U.S. $)

 








U.S. $ in euros

€ 0.784

€ 0.781

-1.30%

1.53%
U.S. $ in yen 

78.43

78.24

-0.08%

1.73%
U.S. $ in Chinese

6.36

6.34

-0.07%

0.53%
yuan











Canada dollar

$1.023

$1.023

0.87%

4.28%
(in U.S. $)

 








U.S. dollar 

$0.978

$0.977

-0.86%

-4.11%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,731.80

$1,740.50

2.62%

10.53%
(per troy ounce)

 








Copper (-HG)

$3.689

$3.645

6.70%

7.35%
(per pound)

 








Silver (-SI)

$33.6330

$33.6900

6.97%

20.48%
(per troy ounce)

 








Wheat (-ZW)

$8.8975

$9.0500

0.03%

36.31%
(per bushel)

 








Corn (-ZC)

$7.8325

$7.995

-2.06%

21.15%
(per bushel)

 








Cotton 

$0.7563

0.763

-2.11%

-17.51%
(per pound)

 








Coffee

$1.7365

1.6305

5.40%

-24.38%
(per pound)

 








Crude oil (-CL)

$96.54

$96.42

0.07%

-2.32%
(per barrel)










 

199Comments
Sep 10, 2012 3:15PM
avatar
A Chicago Public Schools spokesperson said average pay for teachers, without benefits, is $76,000. 

They turned down a 16% raise and went on strike.

Unions....they suck balls.
Sep 10, 2012 2:50PM
avatar
GM losing $49K for every Chevy Volt it sells. Don't worry, the US taxpayer will be there to pick up the slack. We would not want the unions to suffer.
Sep 10, 2012 3:08PM
avatar
Here is what Obummer's backdoor amnesty gets us. -
2 million new workers to a workforce already saddled with 8% unemployment.
Lax documentation requirements to prove eligibility.
Obama's administration is making things up as they go along.
There will be no required face to face interview.
Limited consequences for filing fraudulently.
No consequences to the employers for past illegal hires.
Family of deferred action recipients will also reap the benefits.
If granted work authorization, they can obtain a Social Security Number.
You may qualify even with a criminal record.
USCIS doesn't have a great track record.
Sep 10, 2012 3:24PM
avatar
wow GM aka (obamamotors) is loosing 49K on each dolt, I mean volt, hmmm now let's see here, 49k loss on a riDICulous hybrid (that was supposed to be running on hydrogen) hehehe haha, oh sorry, that made me laugh a little, anyway, where was I again? oh yea, 49k loss on a stupid azz hybrid that costs 45k to buy, minus 7500k rebate aka TAXPAYERS pay for some tree hugger dick's idea of "saving" the planet which doesn't need saving!! equals, why yea NO PROFIT margin on this car whatsoever!! what's that you ask?? well how does GM make "any" money, why on the BIG Suv's and the high performance CAddilac' s and Camaros, fancy that. so basically an insane mindless chicago thug is pres, hands over a car company to the unions, that build cars nobody wanted or buys, hell the gov't can't even bribe people to by the chevy dolt!!! and GM is hemorrhaging money! AGAIN!! well GM, aka obama motors, your not gettin' bailed out again, guaranteed!!! oh yea, wonder what happened to all those "green" energy jobs that were supposed to number into the 500K zone?? hmmm, why all went bankrupt, and obama is ahead of Romney??!! HAAHAAAHAAHA AHAAHAHHAHHAHAH!! oh I need that!! you pathetic libs always make me laugh, thanx!!
Sep 10, 2012 3:09PM
avatar

Buy shares in ink & paper companies.

Ben is about to go into overdrive.

Sep 10, 2012 3:21PM
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I'm off to see the wizard the wonderful wizard of oz.He might be able to point us in the right direction.
Sep 10, 2012 1:26PM
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Copper rises on Stimulus Hopes...........

I guess the copper thieves will get busy............

Now read this News of the day from Howie Mandel:

"The President and Mitchelle Obama are in the front row at a Yankees game.

The row behind them is taken up with the secret service, one of whom leans over and whispers something into Obama's ear. As soon as he finishes, Mr. Obama grabs Mitchelle by the scruff of the neck and heaves her over the railing. Mitchelle falls 10 feet to the top of the dugout, kicking and screaming obscenities. The Secret Service agent leans over again and whispers: "Mr. President, I said, they want you to throw out the first PITCH!"

Sep 10, 2012 1:25PM
avatar
This is a fact. If you are better off than you were 4 years ago, you work for the government, work for labor unions, or you are on food stamps welfare, and unemployment.
Sep 10, 2012 12:52PM
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So how much per share did we pay for AIG? Will we make money? We know we will never make a profit on GM.
Sep 10, 2012 1:32PM
avatar
heheeh hahahahaah!!!! ah ahahahaha!!! sorry, just laughing at the osama aka jimmy carter speech on the disatrous dnce convention, hehehehe heheh my God!!! 29,000 people going on unemployment from HP, gas prices up again!! here in Brooklyn, NY it's 4.05 per gallon!!! outrageous!!! and obama is ahead in the polls??!! hahahaha!!!!! HAHAHAHAHHAAAHAAA!!! obama, the filthy marxist was channeling the low life jimmy carter word for word, and look what happened to carter, he was ahead in the polls too and Reagan steam rolled over him like a pack of stampeding Bull Elephants steam roll over a colony of Dung Beatles!! oh you marxist libs, your soooooooooooo pathetic, it's soo over for you, sooooooooooo over, no matter what the leftwing looney media spins, no matter what phony polls that claim osama is ahead of Romey, it's all finished for you in Nov, Romney is ahead of obama 10pts easy, in a SANE world 20pts!!  nice try lamestream media, trying to dispirit the voters so as to not turn out in nov? NEVER GONNA HAPPEN!! landslide victory for Romny/Ryan and remember where you heard that liberal dirtbag lowlifes!, tic tock tic tock, just weeks to your demise. there's more of us hardworking and producing people than you parasitic blights upon the land, we win, end of game.
Sep 10, 2012 2:13PM
avatar
The Fed and Fraud Street= The destruction of the American Middle Class !!
Sep 10, 2012 2:45PM
avatar
Countrywide Financial  (ARM) Adjusted Rate Mortgage Interest Only=The most Predatory and Toxic loan instrument on the Planet= Bank of America the( To Big To Fail)  !
Sep 10, 2012 2:18PM
avatar
We are all a-flutter waiting for more worthless toilet paper QE Benny Bucks to lift us from the crisis and save the day because we KNOW that QE1 and QE2 worked SO well, didn't they? Yessir, oil up that Fed printing press there, Benny and get to printin'! Makes me pee pee a little just thinking about it.
Sep 10, 2012 2:37PM
avatar

the zombie bankers will print more money

 

they want our brains too

 

eeeeeeeeeeeeeeeekkkkkkkkkkkkkkk

Sep 10, 2012 2:26PM
avatar

hey!! hey!! wha't this!! what's this!!!! Trenton DEMCRAPIC mayer arrested?? for corruption?? in an FBI sting????!!! OMG!!! that never happens with the "I'm for the little people" DEMOCRAPIC phony mantra....oh wait!! why just the other day another DEMOCRAP in Queens NY also arrested in a sting operation for, what else, CORRUPTION!! wow when you DEMOCRAPS get power you just can't help yourselves can you?? oh did George Bush make you steal the PEOPLE's money!! did Chenney do that to you?? Bet it was BIG OIL that corrupted you huh?? or did my Big Bad SUV do it?????you vial marxist pigs, so many corrupt black people too, hmmm, guess when your messiah is pres and head king of all marxists and corruption inside the Beltway you think you can get away with murder, hehe well your just helping the Conservative cause, you jackazzes are the very thing the voters have just about HAD ENOUGH of these past dismal 3.8yrs all you DEMOCRAPS are more finished than you can possibly imagine, and it took a marxist black regime to wipe you out, how funny is that!! I"m laughin' right now! HAHAHAHAHAHAHAAAAHAHHAHAAHA!!!!

Sep 10, 2012 4:34PM
avatar
Just what we need!!! Yet another round of worthless toilet paper QE Benny Bucks to drive us FURTHER into the black hole of debt driven permanent contractive deflation. Because we KNOW that QE 1 and 2 worked soooooo well. Here's a thought: how about managing contraction before it manages us???
Sep 10, 2012 4:50PM
avatar
I thought last week was all the crap about the Fed and Europe!  Now we are worrying about some high court decision from Germany?  Seems like W/S only concerns themselves with the United States when it's convenient or they can't blame their losses using Europe as the scapegoat! Has anyone ever considered that W/S is the major reason why the economy is down? When you make decisions on buying and selling on the what if scenario, what is the world coming to?
Sep 10, 2012 4:10PM
Sep 10, 2012 1:28PM
avatar

...just the kind of spelling and ideas that one would expect from one of the "over-educated" fools on the Hope and Change democrat side...ehhh Sparticus???...

Sep 10, 2012 8:15PM
avatar
When will the posters on this site  realize that the stock market is not a good indicator of the health of the economy?  Merely speculators - not investors.  Never, apparently.
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