BUSINESS Wall Street lower as iPhone X concerns hit Apple shares

BUSINESS

Wall Street lower as iPhone X concerns hit Apple shares

By Sruthi Shankar | Reuters

05:19, December 27, 2017

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Traders work on the floor of the New York Stock Exchange, (NYSE) in New York, US, December 1, 2017. Photo:/Brendan McDermid 

Wall Street’s main indexes came under pressure on Tuesday following a 2.5 percent drop in Apple’s shares on a report of weak iPhone X demand.

Apple will slash its sales forecast for its flagship phone in the current quarter to 30 million units, down from what it said was an initial plan of 50 million units, Taiwan’s Economic Daily reported, citing unidentified sources.

That, along with a few bearish brokerage calls on iPhone X demand, put its shares on track for their worst single-day percentage fall since Aug. 10.

Apple will slash its sales forecast for its flagship phone in the current quarter to 30 million units, down from what it said was an initial plan of 50 million units, Taiwan’s Economic Daily reported, citing unidentified sources.

That, along with a few bearish brokerage calls on iPhone X demand, put its shares on track for their worst single-day percentage fall since Aug. 10.

“It looks to me that technology sector, already paying the lowest in taxes of around 24 percent, will not get as much of an impact as the financial sector, which pays the highest,” said Sandy Villere, portfolio manager of the Villere Balanced Fund

“Maybe that rotation has begun and the FANGS may see some profit-taking into next year.”

A long-promised Republican bill to cut corporate tax rates to 21 percent from 35 percent was ratified last week.

At 10:49 a.m. ET (1549 GMT), the Dow Jones Industrial Average rose 0.05 percent to 24,765.7, while the S&P 500 fell 0.05 percent to 2,681.84.

Energy sector .SPNY rose 0.73 percent as oil jumped, supported by an explosion on a crude pipeline in Libya and voluntary OPEC-led supply cuts. [O/R]

Shares of department stores Kohl’s, JC Penney and Macy’s were up between 4.7 percent and 8 percent after a report that retail sales in the holiday period rose at their best pace since 2011.

Sucampo Pharma surged 6 percent after Mallinckrodt said it would acquire the drugmaker for $1.2 billion. Mallinckrodt shares rose 4.3 percent.

Most markets around the world, including parts of Europe and Asia, were shut on Tuesday. Trading volumes are also expected to be light in the holiday week.

Bitcoin traded up more than 13 percent at $15,780, recovering from last week's selloff which saw the cryptocurrency plunge about 30 percent.

Shares of related stocks such as Riot Blockchain and Longfin Corp jumped more than 13 percent.

Advancing issues outnumbered decliners on the NYSE by 1,641 to 1,088. On the Nasdaq, 1,404 issues fell and 1,316 advanced.

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