Apple Weighs on Broad Markets; Dow Rises
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Tumbling shares of technology giant Apple pushed the broad-market averages into the red Monday. However, the narrower Dow managed to eke out gains.
Today's Markets
The Dow Jones Industrial Average rose 18.9 points, or 0.14%, to 13507, the S&P 500 dipped 1.4 points, or 0.09%, to 1471 and the Nasdaq Composite dropped 8.1 points, or 0.26%, to 3118.
The markets edged up last week, with the broad S&P 500 closing just slightly below its highest mark in five years. Sentiment was gloomier as the new week kicked off.
Apple (NASDAQ:AAPL) has been a major focus on Wall Street recently, seeing its shares drop sharply over the past few months amid worries stiffer competition is beginning to cut into its bottom line. The fears grew over the weekend on multiple news reports that the company has cut back on part orders for the iPhone 5 -- the company's latest-generation smartphone. The Wall Street Journal reported that the company sliced orders for the calendar first quarter in half.
The company's market value of just less than half a trillion dollars means it often has an outsize effect on the markets. In particular, the technology-heavy Nasdaq tends to be swayed by big moves in Apple shares.
Also on the corporate front, United Parcel Service (NYSE:UPS) said it will drop its bid to buy Dutch delivery company TNT Express on expectations the European Union will veto the deal.
Earning season will ramp up this week as several big-name financial institutions report first-quarter earnings. Investors will be paying close attention to results from J.P Morgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS). Other big names will include Intel (NASDAQ:INTC) and UnitedHealth -- both Dow components.
There are no major economic reports on tap Monday, but Federal Reserve Chairman Ben Bernanke is set to speak in Michigan right as the markets close at 4:00 p.m. ET. His statements often move the markets, but his comments may not impact U.S. indexes until Tuesday.
In metals, gold prices climbed $8.80, or 0.53%, to $1,669 a troy ounce. Elsewhere, the benchmark crude contract rose 58 cents, or 0.62%, to $94.14 a barrel. Wholesale New York Harbor gasoline climbed 0.53% to $2.754 a gallon.
Foreign Markets
The Euro Stoxx 50 fell 0.1% to 2715, the English FTSE 100 dipped 0.22% to 6108 and the German DAX gained 0.18% to 7730.
In Asia, the Japanese Nikkei 225 rallied 1.4% to 10802 and the Chinese Hang Seng jumped 0.64% to 23413.