Sign in to comment!

Menu
Home

Morning Outlook

Apple Takes Bite Out of Wall Street's Rally

Wall Street couldn't muster the means to drive stocks higher last week. The Dow and S&P 500 finished with slight losses, snapping what had been a three-week winning streak, and it was the Nasdaq Composite's second losing week in a row.  

Now, the question is whether the risks associated with the fiscal cliff – and even Apple's stock – will send the market into an end-of-the-year tailspin.  

On Friday, the Dow fell 36 points to 13,135, while the Nasdaq Composite lost 21 points and the S&P 500 slipped 6.  

Technology stocks led the retreat Friday on continued weakness in Apple (AAPL). That trend is continuing Monday morning, with the Dow and S&P futures indicating a higher open, but Nasdaq futures lower.

Citigroup (C) cut its rating on Apple to “neutral” Sunday night, citing research that shows "near-term supply-chain order cuts” that “bring into question the strength of iPhone 5."

Citigroup also cut its price target on Apple by $100, to $575.

The downgrade came just as Apple reported that it sold more than two million iPhone 5 units in its launch weekend in China.

Apple shares are trading 2.5% lower at $497 in the pre-market, their first drop below $500 since February.

Lauren Simonetti joined FOX Business Network (FBN) in September 2007 as a field producer and became a reporter for the network in September 2011.