Shares of technology bellwether Apple dipped, dragging the
S&P 500 and Nasdaq lower on Monday after investors were
alarmed by the low demand for the company's products. However,
the Dow Jones still managed to add some points. Investors
continue to await results from major banks this week.
Meanwhile, President Barack Obama said law makers should act fast
to raise the debt ceiling and also said he is not ready to
bargain on this issue. The technology sector was the biggest
loser whereas the industrial sector was the major gainer among
the S&P 500 industry groups.
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The Dow Jones Industrial Average (DJI) gained 0.1% to close the
day at 13,507.32. The Standard & Poor 500 (S&P 500)
slipped 0.1% to finish yesterday's trading session at 1,470.68.
The tech-laden Nasdaq Composite Index dropped 0.3% to end at
3,117.50.The fear-gauge CBOE Volatility Index (VIX) gained 1.2%
to settle at 13.52. Consolidated volumes on the New York Stock
Exchange, American Stock Exchange and Nasdaq were roughly 5.6
billion shares, significantly lower than 2012's daily average of
6.42 billion shares. Advancing stocks outpaced decliners on the
NYSE; as for 50% stocks that rose, 46% moved lower.
Technology bellwether Apple Inc. (NASDAQ:
) lost 3.6% and was largely responsible for dragging the S&P
500 and Nasdaq into negative territory. The Wall Street Journal
reported that Apple has reduced its demand for LCD screens and
other components for the iPhone 5 in the current quarter due to
lower-than-expected demand. Shares of Apple fell as much as 4% in
the early part of the trading session, reaching its lowest level
in more than ten months.
Following these developments, the technology sector closed in the
red. The Technology SPDR (XLK) lost 0.6%. Stocks such as Google
), Silicon Graphics International Corp (NASDAQ:
), AOL, Inc. (NYSE:
) and Blucora Inc (NASDAQ:
) slipped 2.3%, 0.7%, 0.5% and 1.0%, respectively.
Investors are also waiting for results from major financial
companies this week. JPMorgan Chase & Co. (NYSE:
), Citigroup Inc. (NYSE:
), Bank of America Corp (NYSE:
) and Goldman Sachs Group, Inc. (NYSE:
) are slated to report their quarterly results. During this week,
38 S&P 500 companies will report their quarterly results.
Data from Thomson Reuters shows that S&P 500 profits will
increase 1.9% year over year. In the third-quarter, S&P 500
earnings increased by only 0.1%.
President Barack Obama appealed to U.S. lawmakers to take fast
action to raise the debt ceiling. He also said a failure to do so
result in problems for the economy and "Social Security benefits
and veterans' checks will be delayed." President Obama said he
will disclose his proposals in the coming week.
The House of Representatives Speaker John Boehner said: "The
House will do its job and pass responsible legislation that
controls spending, meets our nation's obligations and keeps the
government running, and we will insist that the Democratic
majority in Washington do the same." On the other hand, Senate
Minority Leader Mitch McConnell said: "The President and his
allies need to get serious about spending, and the debt-limit
debate is the perfect time for it."
Industrials had a good run and was the major gainer among the
S&P 500 industry groups. The Industrial Select Sector SPDR
(XLI) gained 0.4%. Stocks such as Union Pacific Corporation
), 3M Co (NYSE:
), The Boeing Company (NYSE:
), Deere & Company (NYSE:
) and United Parcel Service, Inc. (NYSE:
) surged 0.3%, 0.8%, 1.9%, 0.3% and 1.7%, respectively.