INSUBCONTINENT EXCLUSIVE:
stocks snapped a three-day rally on Friday as Apple shares dropped following a disappointing forecast and the White House dampened optimism
over U.S.-China trade talks.
Apple Inc tumbled 6.6 percent, sending its market value below $1 trillion at the close, a day after the iPhone
maker warned that sales for the crucial holiday quarter may miss expectations
Apple in August had become the first publicly listed U.S
company with a $1 trillion market value.
The forecast dragged down shares of Apple's U.S
suppliers, mostly chipmakers, and pushed the SP technology sector down 1.9 percent.
"The tone was set by Apple's earnings
That's clearly been a headwind all day," said Eric Kuby, chief investment officer, North Star Investment Management Corp, Chicago.
Kuby also
cited weak earnings from Kraft Heinz as having an effect on the broader market
"With Kraft, you have two different types of companies that were disappointing," he said.
Remarks by White House economic adviser Larry
Kudlow on CNBC about trade talks with China also dampened the mood
While President Donald Trump will meet with Chinese President Xi Jinping this month, he has not asked U.S
officials to draw up a proposed trade plan, Kudlow said, contradicting a report earlier in the day that had buoyed hopes of a trade dispute
resolution.
Stocks extended losses following Kudlow's comments, and the trade-sensitive SP 500 industrial index, which was up earlier in the
session, closed down 0.3 percent.
"That tells you tariffs are still a factor, and from the reaction we saw there, that tells me it's a
heavier weighting in the investment decision than what people were anticipating before," said Michael Matousek, head trader at U.S
Global Investors Inc in San Antonio, which manages about $1.3 billion.
The Dow Jones Industrial Average fell 109.91 points, or 0.43 percent,
to 25,270.83, the SP 500 lost 17.31 points, or 0.63 percent, to 2,723.06, and the Nasdaq Composite dropped 77.06 points, or 1.04 percent, to
7,356.99.
Still, the SP 500 and Nasdaq registered their biggest weekly percentage gains since May, while the Dow posted its biggest weekly
For the week, the SP 500 and Dow each rose 2.4 percent and the Nasdaq climbed 2.7 percent.
Economic data was healthy, with the Labor
Department's payrolls report showing job growth rebounded sharply in October, pointing to further labor market tightening that could
encourage the Federal Reserve to raise benchmark interest rates in December.
Shares of Kraft Heinz Co fell 9.7 percent after the company
missed quarterly earnings estimates and cited steep commodity costs, other expenses and pricing promotions that overshadowed
higher-than-expected sales.
Other earnings reports were more upbeat.
Chevron Corp gained 3.2 percent after reporting its quarterly profit
doubled on record oil and gas production.
Starbucks Corp shares hit a record high and closed up 9.7 percent, a day after the coffee chain
reported strong sales in the United States and China.
Overall, third-quarter results have been stronger than expected, with about 78 percent
of the reports so far beating analysts' estimates, according to I/B/E/S data from Refinitiv.
Declining issues outnumbered advancing ones on
the NYSE by a 1.29-to-1 ratio; on Nasdaq, a 1.07-to-1 ratio favored advancers.
The SP 500 posted eight new 52-week highs and five new lows;
the Nasdaq Composite recorded 41 new highs and 53 new lows.
About 8.9 billion shares changed hands on U.S
That compares with the 8.8 billion daily average for the past 20 trading days
