- Title: USA/FILE: Wall Street falls. Apple disappoints.
- Date: 24th July 2012
- Summary: PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) EXTERIOR OF APPLE STORE VARIOUS OF APPLE PRODUCTS VARIOUS LOCATIONS (FILE) (REUTERS) VARIOUS OF PEOPLE LOOKING AT APPLE PRODUCTS
- Embargoed: 8th August 2012 13:00
- Location: Usa
- Country: USA
- Topics: Economy
- Reuters ID: LVA9ASHLVYH0NAFMZIBYEUVA7KTU
- Story Text: Apple revenue misses Wall Street forecasts, shares plunge. U.S. stocks fall on Europe, earnings.
Wall Street stocks fell on Tuesday (July 24), hit by signs the euro zone crisis is worsening and evidence that Europe's slowdown is hurting U.S. companies, including bellwether UPS.
The decline was the third straight for the S&P 500 index, which tested its 50-day moving average, a technical support level which could trigger more selling if convincingly broken.
Stocks got a lift late in the session after the Wall Street Journal said Federal Reserve officials were moving closer to taking new steps to spur activity and hiring. Fed officials recently have spelled out what measures they might take, including Chairman Ben Bernanke in a speech last week.
United Parcel Service, seen by many as a proxy for economic activity, fell 4.6 percent to $74.34 (USD) after reporting quarterly results that missed forecasts and cut its 2012 outlook, citing uncertain global economic conditions. UPS helped pull the Dow Jones Transportation average down 1.2 percent.
The struggles of the U.S. and euro zone economies intensified in July, surveys showed on Tuesday. Europe's private sector looked set for a prolonged slump as the surveys showed the downturn that began in the euro zone's small economies has since become entrenched in Germany and France.
Concerns about the euro zone grew after Spain was forced to pay the second highest yield on short-term debt since the launch of the euro and European Union officials said Greece had little hope of meeting the terms of its bailout.
The Dow Jones industrial average was down 104.14 points, or 0.82 percent, at 12,617.32. The Standard & Poor's 500 Index was down 12.21 points, or 0.90 percent, at 1,338.31. The Nasdaq Composite Index was down 27.16 points, or 0.94 percent, at 2,862.99.
Apple Inc's quarterly revenue missed Wall Street expectations as brisk sales of new iPads failed to offset lower-than-expected sales of its iPhones, sending its shares down almost 6 percent in extended trade.
The most valuable U.S. technology company said fiscal third-quarter revenue rose to $35 billion, much lower than the average analyst estimate of $37.22 billion, according to Thomson Reuters I/B/E/S.
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