Dow off 27 as Apple, techs lead stocks lower

Apple drops on worries about iPhone supplies and worker unrest in China. Netflix soars on an upgrade. Facebook falls on a 'sell' call. Alcoa rises ahead of Tuesday's earnings results. Gold and crude oil move lower.

By Charley Blaine Oct 8, 2012 1:11PM
Charley BlaineUpdated: 7:14 p.m. ET

Tech stocks, especially Apple (AAPL), were lower today and were the chief reason U.S. stocks moved down.

Apple finished down $14.42 to $638.17. Also moving lower were Google (GOOG), Oracle (ORCL), Qualcomm (QCOM), Microsoft  (MSFT, publisher of MSN Money) and Facebook (FB).

There were other issues, of course, starting with worries about the third-quarter earnings season, which unofficially begins with Alcoa's (AA) report after Tuesday's close.

In addition, there was continued fretting about global economic growth. And the World Bank cut its economic growth forecast for China, citing property-market troubles and subdued global demand for exports from the world's second-largest economy.

The Dow Jones industrials ($INDU) closed down 27 points to 13,584. The Standard & Poor's 500 Index ($INX) was off 5 points to 1,456, and the Nasdaq Composite Index ($COMPX) was off 24 points to 3,112. Volume was light.

Article continues below.
The Nasdaq-100 Index ($NDX), heavily influenced by Apple, was off 25 points to 2,787.

After the close, Intel (INTC) shares fell 19 cents, or 0.8%, to $22.32, after Bernstein Research downgraded the stock, citing pricing pressures for the chip maker in the next 12 to 18 months.

Stocks look to open flat on Tuesday.

Crude oil (-CL) in New York and London and gold (-GC) were all lower. The Treasury bond market and banks were closed for Columbus Day.

Crude oil in New York settled down 55 cents to $89.33 a barrel, although Brent crude settled down 20 cents to $111.82.

The national average price of gasoline was $3.818, up slightly from Sunday's $3.814, according to AAA's Daily Fuel Gauge Report. The average has been pushed higher by a big spike in prices in California as refinery and pipeline problems squeezed supply. The run-up -- with pump prices jumping nearly to $4.70 a gallon -- caused Gov. Jerry Brown to call Sunday for a quick infusion of winter-blend gasoline.

Gold was off $5.10 to $1,775.70 an ounce. Silver (-SI) was off 55.5 cents to $34.017 an ounce. Copper (-HG) fell 6 cents to $3.718 a pound.

The 10-year Treasury note was yielding 1.746% in the secondary market.

Alcoa may report break-even results
Alcoa finished up 3 cents to $9.12. It is expected to break even for the quarter on revenue of $5.54 billion, down from $6.42 billion a year ago. It has struggled in the face of supply gluts from China and slumping demand in Europe.

Also reporting after Tuesday's close is Yum Brands (YUM), which is expected to earn 97 cents a share on revenue of $3.66 billion. The company has seen big growth in China. So, investors will be watching to see if the slowing Chinese economy is affecting its business. Shares were up 94 cents to $66.94 today.

Apple shares continue to sag
Apple was the the second-worst-performing Nasdaq-100 stock and 11th-worst among S&P 500 stocks. Its huge market capitalization of just under $600 billion makes its effect on the market larger.

The stock is down 9.1% since peaking at $702.10 on Sept. 19. As important, the shares are trading under their 50-day simple and exponential moving averages, a key measure of investor confidence.

Apple has been having issues with the iPhone 5. The mapping program doesn't work properly. There have been problems with scratched cases, and Apple has been struggling to keep up with the huge demand for the product.

In addition, there have been repeated reports of labor unrest at Foxconn's plant in Zhengzhou, China. Foxconn is the big Chinese electronics company that assembles the iPhone.

Energy prices -- New York close



Mon.

Fri.

Month chg.

YTD chg.
Crude oil (-CL)

$89.33

$89.88

-3.10%

-9.61%
(per barrel)











Heating oil (-HO)

$3.1443

$3.1559

-0.47%

7.90%
(per gallon)











Natural gas (-NG)

$3.4030

$3.3960

2.50%

13.85%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.8931

$2.9525

-0.92%

8.87%
(per gallon)











Brent crude 

$111.82

$112.02

-0.51%

4.13%
(per barrel)











Retail gasoline

$3.8180

$3.8140

0.82%

16.54%
(per gallon; AAA)












Health-insurer UnitedHealth Group (UNH), McDonald's (MCD) and American Express (AXP) were the strongest of the 30 Dow stocks today. UnitedHealth moved higher after announcing it was investing $4.3 billion to buy 90% of Brazil's Amil Participacoes.

Walt Disney (DIS), down 64 cents to $52.33, was the third-worst performer among the Dow stocks, after analysts at Caris lowered their rating on the shares to "average" from "above average." They said the shares have rallied to a fair price for the company. Disney's stock is up nearly 40% this year, fourth-best among the Dow stocks.

Home Depot (HD) and Hewlett-Packard (HPQ) were the Dow laggards, down $1.32 to $61.88 and 27 cents to $14.46, respectively. The probable cause for Home Depot was profit-taking. The stock is the Dow's third-best performer this year, up 47.2%, and hit a 12-year high of $63.20 on Friday.

Hewlett-Packard was lower as investors wonder if it can ever be turned around.

Facebook fell 51 cents to $20.40 after a BTIG analyst lowered his rating on the company to "sell" from "neutral." He said Facebook's efforts to make money off its services could come at the expense of users' experiences with its services.

Netflix (NFLX), up $6.96 to $73.52, was the top performer among S&P 500 and Nasdaq-100 stocks. Morgan Stanley analyst Scott Devitt raised his rating on Netflix's stock to "overweight" from "equal weight."

Used-car dealer Carmax (KMX) was second among S&P 500 stocks, up 2.67 to $31.86. JDS Uniphase (JDSU), LSI Logic (LSI) and Jabil Circuit (JBL) were the S&P 500 laggards.

Sears Holdings (SHLD) , up $1.80 to $58.58, and Green Mountain Coffee Roasters (GMCR), up 41 cents to $22.54, were the Nasdaq-100 leaders after Netflix. Alexion Pharmaceuticals (ALXN), Apple and Qualcomm 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 

0.676%

0.667%

7.30%

-18.55%
10-year Treasury note

1.746%

1.732%

6.66%

-6.68%
30-year Treasury bond

3.032%

3.032%

0.00%

4.95%
Currencies











U.S. Dollar Index

79.622

79.428

-0.50%

-1.12%
British pound

1.6041

1.6142

-0.74%

3.24%
(in U.S. $)

 








U.S. $ in pounds

£0.623

£0.620

0.74%

-3.14%
Euro in dollars

$1.30

$1.30

0.89%

0.09%
(in U.S. $)

 








U.S. $ in euros

€ 0.771

€ 0.768

-0.89%

-0.09%
U.S. $ in yen 

78.37

78.66

0.51%

1.65%
U.S. $ in Chinese

6.31

6.32

0.47%

-0.25%
yuan











Canada dollar

$1.024

$1.023

0.72%

4.38%
(in U.S. $)

 








U.S. dollar 

$0.977

$0.978

-0.64%

-4.20%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,775.70

$1,780.80

0.10%

13.33%
(per troy ounce)

 








Copper (-HG)

$3.718

$3.778

-1.06%

8.21%
(per pound)

 








Silver (-SI)

$34.0170

$34.5720

-1.62%

21.86%
(per troy ounce)

 








Wheat (-ZW)

$8.6100

$8.5750

-4.60%

31.90%
(per bushel)

 








Corn (-ZC)

$7.4200

$7.480

-1.88%

14.77%
(per bushel)

 








Cotton 

$0.7178

0.7149

1.60%

-21.71%
(per pound)

 








Coffee

$1.6910

1.681

-2.54%

-26.37%
(per pound)

 








Crude oil (-CL)

$89.33

$89.88

-3.10%

-9.61%
(per barrel)










 

230Comments
Oct 8, 2012 5:04PM
avatar
Hey Monkeys did any of you ever find any of those there dang WMD things
Oct 8, 2012 5:01PM
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Pete you're dealing with folks who voted for baby bush twice and thought Sarah Palin was a good idea, you shouldn't expect to much.
Oct 8, 2012 4:59PM
Oct 8, 2012 4:57PM
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Here is the republicans logic lol

The stock market is doing great....its up 78%.....yeah right its all fake

The housing market is improving....yeah right its all fake

The unemployment rate went down to 7.8%....yeah right its all fake

What is with you people refusing to accept facts....do you blindly hate that much just because of your party.....In the face of staggering facts and improvments in the economy you people still refuse to accept reality......pretty sad 
Oct 8, 2012 4:57PM
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Home Depot was responsible for a lot of downside on the DOW also...

Up aft. hrs.

Oct 8, 2012 4:57PM
avatar

What is the only thing that Republicans have done and do to benefit most Americans?

 

They DIE!

 

DIE REPUBLICANS, DIE!

Oct 8, 2012 4:57PM
avatar

Hey Monkeys do you remember when the baby bush administration said the iraq war would be paid by iraq oil?

 

 

Oct 8, 2012 4:57PM
avatar
Woooooohhhhhoooooo!!!!!!!!!!!!!!!!
Oct 8, 2012 4:46PM
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Hey Monkeys!!!

 

Unemployment at 7.8% good news. Unemployment at 7.8% good news. Unemployment at 7.8% good news. Unemployment at 7.8% good news. Unemployment at 7.8% good news. Unemployment at 7.8% good news.

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Unemployment at 7.8% good news.

Oct 8, 2012 4:46PM
avatar
"7.8% unemployment, what great news, such a spin for Obama.  Many people are still unemployed and suffering. Its a shame that Obama is celebrating over this misleading figure!"

I agree. Imagine what would happen if Obama had Rove and his Rogue Billionaires arrested and we drained those fake 501(c)(4) charities funding Romney's campaign to recover jobs. Bet we could recover most of them and put the worst examples of anti-Americans behind bars.
Oct 8, 2012 4:44PM
avatar

ROTFLMAO

 

Look how easy it is to rattle the monkeys cage.

Oct 8, 2012 4:44PM
avatar
"Funny how mad you are about the gas prices...Gas is run by private companies and very rich [strategically hired-in executives and Board Directors]... NOT THE GOVERNMENT....they make fortunes at our expense and there is nothing you can do about it. They know you need gas so why should they lower their prices....this is what we call republican capitalism they always scream about...See what happens when you give these rich ceo's rope they hang the country....just like Romney... just like Bush."

If there is one thing worse than an oil mogul, it's pigeons like so many posters here, who invest in oil at the expense of all peoples globe-wide. You have to appreciate the finger-pointing at the President. Yea, Jeff... ONE MAN in the White House with no ties to oil controls us, but hundreds of executives, directors and investors who wield too much power unfairly in America... don't have anything to do with it? They will even crash plane-fulls of people into towers to create war over false weapons of mass destruction to get MORE OIL. Americans know this. There won't be ONE Republican left in Office after November's elections.

Oct 8, 2012 4:43PM
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7.8% unemployment, what great news, such a spin for Obama.  Many people are still unemployed and suffering. Its a shame that Obama is celebrating over this misleading figure!
Oct 8, 2012 4:42PM
avatar
Report says unemployment is at 7.8%................................................

................ Because Reality Sucks.....................
Oct 8, 2012 4:41PM
avatar

Unemployment at 7.8% on FUZZY MATH!! 

 

I just learned why there were over 873,000 jobs created the largest monthly jump in 29 years for a net gain of 118,000 after layoffs. There was a miraculous increase in home based jobs, over a 5% increase in 1 month. The only problem is when the Bureau of Labor Statistics does it's telephone surveys, if the person interviewed answers yes to the question " are you working or doing anything from your home to supplement your income?", you are now considered employed. Even if you walked your neighbor's dog or cut his lawn for $15 a week. That small task counts as a home based business that you work at. Just 4 weeks ago telephone interviews with thousands of small businesses showed small firms were planning to lay off more workers sighting decreased business in their respective sectors. This trend didn't indicate a sudden about face in hiring like the administration would like us to believe, it was a policy change in how employment figures are generated. The BLS followed the new guidelines and can truely say the numbers are accurate.

Oct 8, 2012 4:41PM
avatar

Unemployment at 7.8% good news.  Unemployment at 7.8% good news. Unemployment at 7.8% good news. Unemployment at 7.8% good news. Unemployment at 7.8% good news. Unemployment at 7.8% good news.Unemployment at 7.8% good news.Unemployment at 7.8% good news.Unemployment at 7.8% good news.Unemployment at 7.8% good news.Unemployment at 7.8% good news.Unemployment at 7.8% good news.Unemployment at 7.8% good news.Unemployment at 7.8% good news.

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Unemployment at 7.8% good news.

Oct 8, 2012 4:38PM
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Time to nationalize all the oil under this country ! Outlaw speculating any fuel or food products .
Oct 8, 2012 4:38PM
Oct 8, 2012 4:37PM
avatar

Bin Ladin & Co.  dead

 

Obama in 2012 for a safer america.

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