US stocks finish lower; Apple -3.2%
NEW YORK–US stocks finished lower Tuesday following a mixed batch of earnings reports and another big decline by technology giant Apple.
The Dow Jones Industrial Average dropped 47.51 points (0.27 percent) to 17,550.69.
The broad-based S&P 500 fell 4.72 (0.22 percent) to 2,093.32, while the tech-rich Nasdaq Composite Index slid 9.84 (0.19 percent) to 5,105.55.
Apple fell 3.2 percent, leaving it down more than 12 percent since its July 21 earnings release. Analysts have cited fears of slowing growth, in part due to weakening conditions in China, a key Apple market.
Insurer Allstate fell 10.2 percent after a rise in payments for auto accidents dented second-quarter earnings, while handbag and accessories retailer Coach rose 3.2 percent after reporting better-than-expected results.
Biopharmaceutical company Baxalta jumped 11.9 percent on news that Dublin-based Shire offered to acquire the company for $30 billion. Shire fell 5.4 percent. Baxalta rejected the offer, saying it “significantly undervalues” the company.
Netflix shot up 7.7 percent as it confirmed it will launch its streaming television service in Japan on Sept. 2.
Priceline and Tesla Motors gained 3.5 percent and 2.4 percent, respectively, ahead of earnings releases Wednesday.
Chinese online marketplace Alibaba rose 1.1 percent on news that it appointed a senior Goldman Sachs banker, Michael Evans, as president, with an emphasis on globalizing the company.
American Express fell 0.3 percent after a US judge threw out a proposed class-action settlement with merchants on litigation over AmEx swiping fee restrictions. AmEx said it was disappointed with the decision.
CVS Health slid 2.5 percent after projecting earnings in the current quarter of $1.27-$1.30 per share, below the $1.37 forecast by Wall Street analysts.
American International Group shed 2.8 percent as net income for the second quarter rose 5.4 percent to $1.9 billion. The insurer also hiked its dividend and authorized up to $5 billion in new share repurchases, moves that BMO Capital Markets said were intended to compensate for a weak underwriting performance in some businesses.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.23 percent from 2.15 percent Monday, while the 30-year advanced to 2.90 percent from 2.86 percent. Bond prices and yields move inversely.
