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US: Stocks fall as Apple, Microsoft tumble
[NEW YORK] Shares of Apple tumbled 4.3 per cent and Microsoft fell 3.7 per cent as disappointing earnings from the two technology titans weighed Wednesday on the broader market.
At the closing bell, the Dow Jones Industrial Average was at 17,849.87, down 69.42 points (0.39 per cent).
The broad-based S&P 500 fell 5.19 (0.24 per cent) to 2,114.02, while the tech-rich Nasdaq Composite Index sank 36.35 (0.70 per cent) to 5,171.77.
Apple reported that net income for the quarter ending June 27 jumped 38 per cent to US$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 US$3.19 billion due to a hefty writedown on the smartphone business it acquired from Nokia and restructuring charges of nearly a billion dollars.