NEW YORK Wall Street fell on Monday as shares of Apple were hit by demand concerns, while investors faced a busy week for earnings in what is expected to be a lackluster quarter.
Apple (AAPL.O) slid more than 3 percent after a report that the tech company has cut orders for LCD screens and other parts for the iPhone 5 this quarter due to weak demand. The stock was down 3.5 percent at $502.30. It was the biggest drag on the S&P 500 and Nasdaq composite indexes.
"They've had great growth, but the growth is going to slow because we have some formidable competitors we didn't have when the iPhone first came out," said Alan Lancz, president at Alan B. Lancz & Associates Inc in Toledo, Ohio
Apple suppliers Cirrus Logic (CRUS.O) tumbled 4.8 percent to $30.04 and Qualcomm (QCOM.O) lost 1.4 percent to $64. The S&P tech sector gave up 0.9 percent.
Earnings season picks up the pace this week with reports expected from companies including Goldman Sachs (GS.N), Bank of America (BAC.N), Intel (INTC.O) and General Electric (GE.N).
Overall earnings are expected to grow by just 1.9 percent in this reporting period, according to Thomson Reuters data. Thirty-eight S&P 500 companies are due to report results this week.
"Expectations have been lowered from where they were a few weeks ago. Whether they're low enough is going to be the key question," said Lancz.
Analysts say the focus will be on what kind of guidance companies offer now that a deal has been reached on the "fiscal cliff."
Investors will be watching a news conference from President Barack Obama, scheduled for 11:15 a.m. (1615 GMT). Obama is expected to focus on looming budget and borrowing due dates, White House officials said.
Separately, Federal Reserve Chairman Ben Bernanke will be speaking on monetary policy, recovery from the global financial crisis and long-term challenges facing the American economy at 4 p.m. (2100 GMT).
The Dow Jones industrial average slipped 23.01 points, or 0.17 percent, to 13,465.42. The Standard & Poor's 500 Index fell 4.80 points, or 0.33 percent, to 1,467.25. The Nasdaq Composite Index gave up 15.57 points, or 0.50 percent, at 3,110.06.
Appliance and electronics retailer Hhgregg Inc (HGG.N) cut its same-store sales forecast for the full year, sending its shares down 11 percent at $7.02.
Transocean Ltd (RIG.N) has disclosed that billionaire activist investor Carl Icahn has acquired a 1.56 percent stake in the offshore rig contractor and is looking to increase that holding. Its shares rose 3.4 percent to $55.92.
The Dow fared better than the other two indexes as Hewlett-Packard (HPQ.N) rose 1.6 percent to $16.42 after JPMorgan raised its price target to $21 from $15.
(Editing by Kenneth Barry)
Trending On Reuters
Greece's combative finance minister resigned on Monday, removing one major obstacle to any deal to keep Athens in the euro zone after Greeks voted resoundingly to back the government in rejecting the austerity terms of a bailout. Full Article | Greece a flashpoint for Europe?