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US STOCKS-Dow, S&P 500 decline after Apple's sales warning

Published 18/02/2020, 22:50
© Reuters.  US STOCKS-Dow, S&P 500 decline after Apple's sales warning
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Apple down after sales warning

* Walmart forecasts downbeat online sales growth

* Dow down 0.6%, S&P down 0.3%, Nasdaq up 0.02%

(Updates to close)

By Caroline Valetkevitch

NEW YORK, Feb 18 (Reuters) - The Dow and S&P 500 fell on

Tuesday after a sales warning from Apple left investors

assessing the impact of the coronavirus outbreak on U.S.

companies.

But indexes ended off the day's lows and the Nasdaq ended a

touch higher as Apple Inc AAPL.O trimmed its losses in

late-session trading.

The world's most valuable technology firm said it would fall

short of its recently announced quarterly sales target because

of slower iPhone production and weaker demand in China due to

the virus. Its shares ended down 1.8% at $319, while its low of

the session was $314.61. "Certainly this was not welcome news, but I don't think it's

a debacle either," said Michael James, managing director of

equity trading at Wedbush Securities in Los Angeles.

"In general, investors are not overly concerned by the news

from Apple as a read through to technology or the market

overall."

While the exact hit to economic and earnings growth from the

epidemic in China remains to be seen, hopes that the damage

would only be temporary have helped boost confidence on Wall

Street in recent sessions.

Still, Apple suppliers, Qualcomm Inc QCOM.O , Broadcom Inc

AVGO.O , Qorvo Inc QRVO.O and Skyworks Solutions Inc

SWKS.O , all ended down between 1% and about 2% on the day.

China-exposed chipmakers slipped, with the Philadelphia SE

Semiconductor index .SOX shedding 1.4%, while the broader S&P

technology sector .SPLRCT lost 0.4%.

The Dow Jones Industrial Average .DJI fell 165.89 points,

or 0.56%, to 29,232.19, the S&P 500 .SPX lost 9.87 points, or

0.29%, to 3,370.29.

The Nasdaq Composite .IXIC added 1.57 points, or 0.02%, to

9,732.74, eking out a record closing high.

Walmart Inc WMT.N shares rose 1.5% even after the world's

biggest retailer forecast slowing online growth for the year and

reported weak results for the holiday quarter. Conagra Brands Inc CAG.N shed 6.1% after the packaged food

company lowered its full-year profit and sales outlook.

Declining issues outnumbered advancing ones on the NYSE by a

1.37-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored decliners.

The S&P 500 posted 71 new 52-week highs and 7 new lows; the

Nasdaq Composite recorded 127 new highs and 66 new lows.

Volume on U.S. exchanges was 7.23 billion shares, compared

to the 7.61 billion average for the full session over the last

20 trading days.

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