Wall St weighed down by Apple
Thu Dec 22 2016
Nikki Bailey (1048 articles)

Wall St weighed down by Apple

U.S. stocks were lower in light trading on Thursday as a fall in Apple’s shares weighed. Apple fell 0.8 percent to $ 116.38 after Nokia (NOKIA.HE) said it had filed a number of lawsuits against the iPhone maker for patent infringement. The stock was the biggest drag on all three major indexes.

The market showed little reaction to data showing that the U.S. economy grew faster than initially thought in the third quarter, notching up its best performance in two years.

Gross domestic product increased at a 3.5 percent annual rate instead of the previously reported 3.2 percent pace, the Commerce Department said in its third GDP estimate.

“With less traders on their desks and most investors planning where to spend their New Year’s Eve, markets have clearly entered the holiday mood,” said Hussein Sayed, chief market strategist at FXTM. “We can barely see any significant moves in equities, fixed income or even currency markets today, suggesting that more consolidation is expected throughout the remaining days of 2016.”

U.S. stocks have rallied since the Nov. 8 election, with the Dow up about 9 percent and the S&P 6 percent as investors expect the economy to benefit from President-elect Donald Trump’s plans for deregulation and infrastructure spending.

The Dow Jones Industrial Average has been threatening to breach the historic 20,000 mark for the last several days, but has failed to do so.

At 9:39 a.m. ET (1439 GMT) the Dow Jones industrial average .DJI was down 26.77 points, or 0.13 percent, at 19,915.19.  The S&P 500 .SPX was down 5 points, or 0.22 percent, at 2,260.18. The Nasdaq Composite .IXIC was down 14.37 points, or 0.26 percent, at 5,457.06.

Ten of the 11 major S&P sectors were lower, with the consumer discretionary index’s .SPLRCD 0.40 percent fall leading the decliners. Declining issues outnumbered advancers on the NYSE by 1,489 to 1,075. On the Nasdaq, 1,327 issues fell and 866 advanced. The S&P 500 index showed five new 52-week highs and two new lows, while the Nasdaq recorded 33 new highs and 21 new lows.

Other economic data showed the number of Americans filing for unemployment benefits rose to a six-month high last week, but remained below a level that is associated with labor market strength.

Initial claims for state unemployment benefits increased 21,000 to 275,000 for the week ended Dec. 17.

Micron Technology shares jumped 11.6 percent to $ 22.97 after the chipmaker’s profit forecast beat expectations. Red Hat fell 12.2 percent to $ 70.20 after the Linux OS distributor’s quarterly revenue fell below estimates.

Nikki Bailey

Nikki Bailey

Nikki Bailey reports on US Stocks. She covers also economy and related aspects. She has been tracking US Stock markets for several years now. She is based in New York

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