Wall Street flat as Apple down again but retailers rise
By Caroline Valetkevitch | January 16, 2013 7:28 AM EST
Stocks were nearly flat on Tuesday as tech heavyweight Apple dragged on the market as it extended losses into a third day, while economic data helped retailers advance.
Apple was the biggest weight on both the S&P 500 and Nasdaq 100 <.NDX> after reports on Monday of cuts to orders for iPhone parts. Shares were down 3 percent at $486.50 after hitting a session low of $483.84, its lowest level since February.
Retailer stocks advanced and helped to minimize the market's decline after a government report that retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. However, a separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.
"It's trying to push its way up in here, the question is, has Apple stabilized maybe a little bit down here? The retail sales numbers were really good, much better than expected this morning and that is helping the whole retail group," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
"The bulls are clearly trying to take control of this market and hold it up here. There is clearly buying on any of the dips."
The Dow Jones industrial average <.DJI> was up 21.56 points, or 0.16 percent, at 13,528.88. The Standard & Poor's 500 Index <.SPX> was up 0.98 points, or 0.07 percent, at 1,471.66. The Nasdaq Composite Index <.IXIC> was down 8.25 points, or 0.26 percent, at 3,109.26.
Also keeping investors on edge was the looming debt ceiling debate. On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.
Resolving the debt ceiling debate is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.
An expected lackluster earnings season, too, kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.
(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)
Most Popular Slideshows
- Kate Middleton Suffocated in Kensington Palace, Queen Elizabeth Reported War With The Duchess [PHOTOS]
- Chris Martin Dating Reports: Jennifer Lawrence Vs Gwyneth Paltrow [PHOTOS]
- British Style Icon Kate Middleton Fashion Talk With Camilla Parker-Bowles Daughter-In-Law [PHOTOS]
- Miranda Kerr Broke Her Silence: Not Pregnant With James Packard’s Baby [PHOTOS]
Join the Conversation
- 4.7-Inch, 5.5-Inch iPhone 6 Models Confirmed with Similar Build, Cam Features & 300+ Screen Pixels on Release Date
- Saudi Arabia: Brothers Beheaded For Smuggling Marijuana Into The Kingdom
- ISIS: More Journalists Beheading To Come After James Foley and Steven Sotloff [Video]
- Moto X+1 is Likely Nexus 6 Template; Motorola Shamu is 1st Android Silver with Snapdragon 810 – Reports
- James Foley’s Executioner Has British Accent—A Chilling Reminder That ISIS Has Foreign Members
- James Foley: More Chilling Information Revealed By Escaped Journalists
- Xiaomi Mi4 vs iPhone 6: Why Forecasts Favor Mi4 as The Next Best Phone Against iPhone 6