Stocks close lower as Apple sell-off hits Dow
S&P Investment Advisory Services portfolio manager Erin Gibbs, The Stock Swoosh’s Melissa Armo and CFRA Research investment strategist Lindsey Bell discuss the reasons behind the recent market volatility and their market predictions for the end of the year.<br>
U.S. stocks fell Friday as Apple weighed on the Dow Jones Industrial Average and offset a strong performance by General Electric.
The Dow Jones Industrial Average fell 201.95 points, or 0.82%, to 24,462.94. The Nasdaq dropped 91.93 points, or 1.27%, to 7,146.13. The S&P 500 sank 22.99 points, or 0.85%, to 2,670.14 at the close.
The iPhone maker's shares dropped after a weak forecast Thursday from supplier Taiwan Semiconductor. Apple fell more than 4% in trading amid concerns that iPhone X sales could disappoint. Key iPhone suppliers, including Taiwan Semiconductor, Broadcom Inc. and Qualcomm were all down by multiple percentage points.
The day’s other top decliners included toymaker Mattel, which posted a loss of more than 3% after it announced that CEO Margo Georgiadis is leaving the company. Shoe company Skechers USA plummeted more than 27% after company executives released weak sales projections for the second quarter.
General Electric's stock advanced after the industrial giant posted a surprisingly strong performance during the first three months of the year, surpassing analysts’ expectations for earnings and revenue. GE shares rose nearly 4%.
While GE is a Dow component, its gain didn't do a lot to support the benchmark stock index. The reason is that the Dow is price-weighted, meaning that each of the 30-member companies are weighted in proportion to share price.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GE | GE AEROSPACE | 291.86 | +3.37 | +1.17% |
| AAPL | APPLE INC. | 280.70 | -3.45 | -1.21% |
Energy was a weak spot in the market as oil retreated from a nearly 3 ½-year peak after President Donald Trump criticized OPEC in a tweet for keeping prices artificially high.
The yield on the 10-year Treasury note reached its highest level in more than four years, touching 2.958%.