US stocks fall as Apple, Microsoft tumble

This July 15, 2013, file photo shows the New York Stock Exchange. Shares of Apple tumbled 4.3 percent and Microsoft fell 3.7 percent as disappointing earnings from the two technology titans weighed Wednesday on the broader market. AP PHOTO/MARK LENNIHAN

NEW YORK–Shares of Apple tumbled 4.3 percent and Microsoft fell 3.7 percent as disappointing earnings from the two technology titans weighed Wednesday on the broader market.

The Dow Jones Industrial Average fell 68.25 points (0.38 percent) to 17,851.04.

The broad-based S&P 500 dropped 5.06 (0.24 percent) to 2,114.15, while the tech-rich Nasdaq Composite Index sank 36.35 (0.70 percent) to 5,171.77.

Apple reported that net income for the quarter ending June 27 jumped 38 percent to $10.7 billion. But traders focused on a revenue forecast that fell shy of expectations and commentary from some analysts that the 47.5 million iPhones sold missed expectations.

Deutsche Bank said the market’s reaction to Apple’s results showed “it’s getting harder to beat the bulls.”

Microsoft reported a loss of $3.19 billion due to a hefty write-down on the smartphone business it acquired from Nokia and restructuring charges of nearly a billion dollars.

Dow member Caterpillar fell 3.2 percent after the company reported lower equipment sales in most of its businesses in the second quarter. The industrial giant will issue its full earnings report Thursday.

Baker Hughes dropped 3.9 percent on a Bloomberg News report that its $34.6 billion sale to Halliburton could be blocked on antitrust grounds. Halliburton fell 0.8 percent.

Other oil services companies also fell as US crude prices closed under $50 a barrel for the first time since April 2. Weatherford International lost 3.9 percent, Nabors Industries shed 2.5 percent and Cameron International fell 5.0 percent.

Banking stocks rose, including Dow member JPMorgan Chase (+1.4 percent) and Bank of America and Citigroup (both +2.1 percent).

Yahoo fell 1.2 percent after reporting a $22 million loss in the second quarter as chief executive Marissa Mayer warned earnings could be pressured in the coming quarter due to heavy investment in new products.

Aerospace giant Boeing rose 1 percent after second-quarter earnings translated into $1.62 per share, 25 cents above analyst expectations.

Other companies to report earnings included Chipotle Mexican Grill (+7.8 percent), Dow member Coca-Cola (-0.7 percent), GoPro (-0.6 percent), Illumina (-8.4 percent) and Whirlpool (+7.3 percent).

Bond prices rose. The yield on the 10-year US Treasury fell to 2.33 percent from 2.34 percent Tuesday, while the 30-year fell to 3.04 percent from 3.08 percent. Bond prices and yields move inversely.