Wall Street succumbs to Apple’s fall, ‘cliff’ uncertainty
By Caroline Valetkevitch,
NEW YORK — Stocks fell Friday as another slide in Apple took a toll and investors unloaded some shares because of the uncertainty surrounding the “fiscal cliff” negotiations.
For the Nasdaq, this marked the second losing week in a row. All three major U.S. stock indexes ended the week slightly lower.
Apple’s stock slid 3.8 percent to $509.79 after UBS cut its price target on the stock to $700 from $780. The stock of the most valuable U.S. company has been hit hard in the past three months. On Friday, Apple’s stock fell after a tepid reception for the iPhone 5 in China.
The possibility of a fiscal cliff deal not taking place until early 2013 is rising. The back-and-forth negotiations have kept markets on hold in what would already be a quiet period for stocks.
“We’re faced with uncertainty . . . and that’s going to continue now into January. It basically puts everybody on hold and [you] just have the markets kind of thrash around,” said Larry Peruzzi, senior equity trader at Cabrera Capital Markets in Boston.
President Obama and House Speaker John A. Boehner (R-Ohio) held a “frank” meeting Thursday at the White House to discuss how to avoid the tax hikes and spending cuts set to kick in early in 2013.
The Dow Jones industrial average slipped 35.71 points, or 0.3 percent, to 13,135.01 at the close. The Standard & Poor’s 500-stock index fell 5.87 points, or 0.4 percent, to 1,413.58. The Nasdaq Composite Index lost 20.83 points, or 0.7 percent, to close at 2,971.33.
For the week, the Dow slipped 0.2 percent, while the S&P 500 fell 0.3 percent and the Nasdaq declined 0.2 percent.
American Express shares fell 1.9 percent to $56.65 and ranked as the heaviest weight on the Dow.
Best Buy slid 14.7 percent to $12.05 after the electronics retailer agreed to extend the deadline for the company’s founder to make a bid. Shares jumped as much as 19 percent Thursday after initial reports of a bid this week from founder Richard Schulze.
Among the day’s economic data, consumer prices fell in November for the first time in six months, indicating U.S. inflation pressures were muted. A separate report showed manufacturing grew at its swiftest pace in eight months in December.
Data out of China was encouraging, as Chinese manufacturing grew at its fastest pace in 14 months in December. The news was deemed as helpful for U.S. materials companies, including U.S. Steel, which rose 6.8 percent to $23.85.
Volume was roughly 5.8 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of 6.52 billion.
Decliners outnumbered advancers on the NYSE by a ratio of about 8 to 7. On the Nasdaq, decliners barely held an edge over advancers, with 1,241 stocks falling and 1,196 shares rising.