Apple’s plunge hits the Nasdaq

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IOL pic jan24 apple logo Reuters The Apple logo is pictured at the company's flagship retail store in San Francisco, California.

New York - Apple's shares plunged more than 12 percent on Thursday after its earnings disappointment, but the Dow held up in positive territory with help from a Boeing rebound.

Netflix meanwhile soared 42.2 percent in heavy trade after showing strong growth in subscribers, driving income to $945-million in the fourth quarter.

The Dow Jones Industrial Average gained 46.00 points (0.33 percent) at 13,825.33.

The broad-based S&P 500 ended flat, adding just 0.01 (0.00 percent) at 1,494.82.

The tech-heavy Nasdaq Composite fell 23.29 (0.74 percent) to 3,130.38.

The mixed finish followed disappointing revenues and guidance from Apple after the markets closed on Wednesday.

Shareholders of Apple, the biggest US company by market capitalization, punished the stock. Apple shares dropped 12.4 percent to $450.50.

The Apple cloud muted the impact of numerous upbeat global economic reports including stronger-than-anticipated reads on Chinese manufacturing output and eurozone business activity, Charles Schwab & Company said in a research note.

The positive news continued in the United States, where weekly US jobless claims fell for a second straight week.

Outside technology, “nearly all other sectors gained ground thanks to better-than-expected profit tallies and encouraging economic data”, Well Fargo Advisors analysts said.

Dow member 3M reported in-line profits; shares were up 0.2 percent.

Cisco Systems was the strongest Dow gainer, up 1.9 percent.

Defence contractor Lockheed Martin's shares slid 2.9 percent after it reported earnings that fell short of analyst expectations.

Lockheed projected that 2013 profits would come in above the 2012 levels, but it also acknowledged it faces the “uncertainty” of possible defence cuts in Washington.

US airline United Continental rose 2.2 percent after reporting revenues that bested expectations despite an overall loss for 2012.

Biotechnology giant Amgen offered an improved 2013 outlook but shares fell 0.5 percent following lower 2012 profits.

Bond prices fell. The yield on the 10-year US Treasury rose to 1.84 percent from 1.83 percent late on Wednesday, while the 30-year yield increased to 3.04 percent from 3.03 percent. Bond prices and yields move inversely. - Sapa-AFP


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