December 11, 2017
Wednesday, January 27, 2016

Wall Street dragged down by Apple, Boeing

Apple and Boeing's disappointing forecasts dragged down US stock indexes on Wednesday, as anxious investors awaited the Federal Reserve's statement on monetary policy.

Apple's shares were down 5.3 percent at $94.67 after the company also reported its slowest-ever rise in iPhone shipments on Tuesday. The stock was the biggest drag on the S&P 500 and the Nasdaq, and was set for its biggest fall since August.

Boeing sank 9.5 percent to $115.90, its biggest single-day fall since October 2001, and was the biggest negative influence on the Dow.

Apple and Boeing combined accounted for 105 points of the Dow's near 120-point decline.

Crude oil prices rebounded from earlier losses after an unexpected rise in US inventories erased optimism about the possibility of the world's top producers coming together to address a massive glut.

The Dow Jones industrial average was down 130.67 points, or 0.81 percent, at 16,036.56, the S&P 500 was down 11.17 points, or 0.59 percent, at 1,892.46 and the Nasdaq Composite index was down 52.20 points, or 1.14 percent, at 4,515.47.

Seven of the 10 major S&P sectors were lower, led by the 1.7 percent fall in tech stocks.

Declining issues outnumbered advancing ones on the NYSE by 1,702 to 1,176. On the Nasdaq, 1,580 issues fell and 935 rose.

The S&P 500 index showed one new 52-week high and four new lows, while the Nasdaq recorded six new highs and 47 lows.

In Europe, shares were falling, hit by a drop in Swiss drugmaker Novartis and German chemicals company BASF after their weak earnings updates.

Royal Bank of Scotland also dropped after the bank warned its profits would be hit by a pension charge and US litigation provisions.

A forecast of lower revenues from iPhone maker Apple also hit European technology and chipmaker stocks such as ARM and Dialog.

The pan-European FTSEurofirst 300 index was down by 0.7 percent to 1,326.80 points, while the euro zone's blue-chip Euro STOXX 50 index fell 0.7 percent.

Italy's FTSE MIB equity index also fell 1.6 percent, even though Italy reached a deal with the European Commission to help Italian banks sell some of their 200 billion euros of bad loans.

The pan-European FTSEurofirst 300 index had risen 0.9 percent on Tuesday, helped by a rebound in oil prices although oil prices fell back again on Wednesday.

Concerns about a slowdown in China, the world's second-biggest economy and a major consumer of oil and metals, have hit world stock markets this year, while worries about oversupply have also pushed oil prices to their lowest level in more than 10 years.

Germany's DAX, which was down 0.5 percent, remains some 20 percent below a record high reached in April 2015. Both the DAX and FTSEurofirst are down nearly 10 percent since the start of 2016.

Meanwhile, Japan's Nikkei rose to a near two-week high after Wall Street rebounded, while investors were cautious ahead of a US Federal Reserve meeting statement due out later in the day.

The Nikkei share average ended 2.7 percent higher at 17,163.92, the highest closing level since Jan. 14.

The broader Topix gained 3.0 percent to 1,400.70 with all of its 33 sub-indexes in positive territory.

The JPX-Nikkei Index 400 rose 2.9 percent to 12,629.20.

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Tags:  US  stock market  Europe  Nikkei  

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