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US: Stocks finish lower; Apple down 3.2%
[NEW YORK] US stocks finished lower onTuesday 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 per cent) to 17,550.69.
The broad-based S&P 500 fell 4.72 (0.22 per cent) to 2,093.32, while the tech-rich Nasdaq Composite Index slid 9.84 (0.19 per cent) to 5,105.55.
Apple fell 3.2 per cent, leaving it down more than 12 per cent 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 per cent after a rise in payments for auto accidents dented second-quarter earnings, while handbag and accessories retailer Coach rose 3.2 per cent after reporting better-than-expected results.
Biopharmaceutical company Baxalta jumped 11.9 per cent on news that Dublin-based Shire offered to acquire the company for US$30 billion. Shire fell 5.4 per cent. Baxalta rejected the offer, saying it "significantly undervalues" the company.
Netflix shot up 7.7 per cent as it confirmed it will launch its streaming television service in Japan on September 2.
Priceline and Tesla Motors gained 3.5 per cent and 2.4 per cent, respectively, ahead of earnings releases Wednesday.
Chinese online marketplace Alibaba rose 1.1 per cent 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 per cent 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 per cent after projecting earnings in the current quarter of US$1.27 - US$1.30 per share, below the US$1.37 forecast by Wall Street analysts.
American International Group shed 2.8 per cent as net income for the second quarter rose 5.4 per cent to US$1.9 billion. The insurer also hiked its dividend and authorized up to US$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 per cent from 2.15 per cent Monday, while the 30-year advanced to 2.90 per cent from 2.86 per cent. Bond prices and yields move inversely.