Tech Shares Weigh on Wall Street
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Technology shares led Wall Street lower on Monday as big-name tech players like Apple, Microsoft and Hewlett-Packard stumbled.
Today's Markets
The Dow Jones Industrial Average dipped 20.6 points, or 0.15%, to 13559, the S&P 500 slipped 3.3 points, or 0.22%, to 1457 and the Nasdaq Composite slumped 19.2 points, or 0.6%, to 3161.
Apple (NASDAQ:AAPL) said it sold five million iPhone 5 devices in the first three days on sale, below most analysts' estimates. The company said in a release that demand was "incredible" and that it is sold out of its initial inventory. The Cupertino-Calif.-based company has a market capitalization north of $600 billion and often has an outsized impact on the broader markets.
Out of the thirty Dow components, the three worst performers could be found in the technology industry. The energy, materials and consumer discretionary sectors all ended in the red as well amid global growth worries. Traditional defensive plays like utilities and consumer staples performed relatively strongly.
Focus also began shifting once again to Europe, which is still struggling with the impact of the eurozone's debt crisis.
The Ifo Business Climate Index for Germany fell to 101.4 in September from 102.3. Economists expected the gauge to edge up slightly to 102.5.
"The companies surveyed are again less satisfied with their current business situation," Hans-Werner Sinn, president of the Ifo institute said in a release. "They also expressed greater pessimism about the future."
The data serve as yet another reminder that despite easing from the European Central Bank, even the eurozone's strongest economies aren't immune to the currency bloc's debt crisis.
Spain is expected to capture traders' attention this week as well. The Financial Times reported last week that the country may reveal economic reforms necessary to receive EU and ECB help on lowering its borrowing costs as soon as Thursday.
Oil futures continued falling after getting thrashed last week, tumbling 6.5% in the worst week since June. The benchmark contract traded in New York dipped 96 cents, or 1%, to $91.93 a barrel. Wholesale New York Harbor gasoline fell 0.85% to $2.918 a gallon.
In metals, gold slumped $13.40, or 0.75%, to $1,765 a troy ounce.
There are no major economic reports due on Monday.
Foreign Markets
The Euro Stoxx 50 dipped 0.74% to 2558, the English FTSE 100 fell 0.24% to 5839 and the German DAX slumped 0.52% to 7413.
In Asia, the Japanese Nikkei 225 slipped 0.45% to 9069 and the Chinese Hang Seng fell 0.19% to 20695.