- Title: USA: Wall Street closes lower on Fed concerns
- Date: 27th January 2014
- Summary: NEW YORK CITY, NEW YORK, UNITED STATES (FILE - NOVEMBER 1, 2013) (REUTERS) PERSON USING IPAD AIR IN APPLE STORE VARIOUS OF IPAD AIR ON DISPLAY IN APPLE STORE VARIOUS OF EMPLOYEES WORKING IN APPLE STORE VARIOUS OF CUSTOMERS BUYING APPLE PRODUCTS
- Embargoed: 11th February 2014 12:00
- Location: Usa
- Country: USA
- Topics: Economy
- Reuters ID: LVAB2QT7LX79RJK1UMGE3IIZXW0K
- Story Text: U.S. stocks extended recent losses on Monday (January 27), with the S&P 500 falling for a third straight session as concern grew about the Federal Reserve's plans for withdrawing stimulus.
The losses, which picked up late in the session after the S&P 500 briefly traded in positive territory, followed a steep selloff late last week tied to emerging market concerns. The slide gave the S&P 500 its worst weekly percentage loss since June 2012.
Limiting losses in the Dow and S&P 500, however, was Caterpillar. The stock jumped 5.9 percent to $91.29 (USD) after the maker of mining and construction equipment reported a stronger-than-expected quarterly profit.
The technology sector led the day's decline, with the S&P 500 technology sector index falling 1 percent and the Nasdaq underperforming both the Dow and S&P 500. Google, off 2 percent at $1,101.23, and Microsoft, down 2.1 percent at $36.03, were among the day's biggest drags.
The Fed's two-day policy meeting begins on Tuesday. Many market participants are bracing for the market to sell if the Fed decides to keep withdrawing stimulus. In December, the U.S. central bank announced plans to begin scaling back its massive bond-buying program.
The Dow Jones industrial average fell 41.23 points or 0.26 percent, to end at 15,837.88. For the Dow, Monday marked a fifth session of losses.
The S&P 500 dropped 8.73 points or 0.49 percent, to finish at 1,781.56. The Nasdaq Composite slid 44.56 points or 1.08 percent, to close at 4,083.61.
Apple Inc missed Wall Street's target for iPhone sales over the crucial holiday shopping season and offered a weaker-than-expected forecast for this quarter, sending its shares down 6 percent after hours on Monday.
The world's most valuable technology company sold a record 51 million iPhones in the quarter, below the 55 million or so analysts had expected, reflecting intense competition from arch-foe Samsung Electronics during the crucial period.
The company forecast sales of $42 billion to $44 billion this quarter, which investors expect to be brisker than usual because of its recently sealed deal to sell iPhones through China Mobile Ltd, the country's No. 1 carrier. Wall Street is expecting $46 billion, on average.
The March quarter is especially important because of the China Mobile deal and the initial launch in that region. So the lower-than-expected revenue guidance was a troubling sign.
The company on Monday recorded sales of $57.6 billion in its December or fiscal first quarter, versus expectations for about $57.5 billion. First fiscal quarter earnings were $14.50 a share, compared to Thomson Reuters I/B/E/S estimate of $14.07.
Apple also sold a record 26 million iPads in the quarter, in line with Wall Street estimates.
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