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 (NASDAQ:AAPL). That trend is continuing Monday morning, with the Dow and S&P futures indicating a higher open, but Nasdaq futures lower.
Citigroup (NYSE: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.