* Apple demand worries drag on S&P, Nasdaq
* Earnings season picks up this week
* Obama urges raise of debt ceiling
* Indexes: Dow up 0.01 pct, S&P off 0.29 pct, Nasdaq off
By Chuck Mikolajczak
NEW YORK, Jan 14 Wall Street dipped on Monday as
concerns about demand for Apple products sent shares of the tech
heavyweight lower and investors faced a busy week for earnings
in what is expected to be a uninspiring quarter.
Apple lost 3.2 percent to $503.60 as the biggest
weight on both the S&P 500 and Nasdaq 100 indexes after
reports that the tech company has cut orders for LCD screens and
other parts for the iPhone 5 this quarter due to weak demand.
The stock earlier hit a session low of $498.51, the first dip
below $500 since February 16.
"It's clear from them reducing their supply orders that the
sales haven't met their expectations, though certainly the
orders they put into place for the iPhone 5 displays were higher
than those that were in place for the prior phone," said Peter
Jankovskis, co-chief investment officer at OakBrook Investments
LLC in Lisle, Illinois.
"Certainly, the rate of growth that they had - the
tremendous surge in their revenue, stock price, all things do
eventually slow and come down, so it's not a big surprise - the
big question always is when."
Apple suppliers also lost ground, with Cirrus Logic
off 8.7 percent to $28.82 and Qualcomm down 1.4 percent
to $63.98. The S&P tech sector declined 1 percent as the
worst performer of the 10 major S&P sectors.
The pace of earnings season picks up this week with 38 S&P
500 companies set to report, including Goldman Sachs,
Bank of America, Intel and General Electric
Overall earnings are expected to grow by just 1.9 percent in
this reporting period, according to Thomson Reuters data.
President Barack Obama warned Congress at a news conference
on Monday that a refusal to raise the U.S. debt ceiling next
month, leading to a government shutdown, could trigger economic
"Again, we are dealing with a public relations type of
approach trying to get to (Obama's) preferred result,"
Separately, Federal Reserve Chairman Ben Bernanke will be
speaking on monetary policy, recovery from the global financial
crisis and long-term challenges facing the American economy at 4
p.m. (2100 GMT).
The Dow Jones industrial average gained 0.76 points,
or 0.01 percent, to 13,489.19. The Standard & Poor's 500 Index
shed 4.24 points, or 0.29 percent, to 1,467.81. The
Nasdaq Composite Index lost 16.42 points, or 0.53
percent, to 3,109.21.
Appliance and electronics retailer Hhgregg Inc
slumped 8.9 percent to $7.19 after the electronics and appliance
retailer cut its same-store sales forecast for the full year.
Transocean Ltd has disclosed that billionaire
activist investor Carl Icahn has acquired a 1.56 percent stake
in the offshore rig contractor and is looking to increase that
holding. Its shares advanced 0.9 percent to $54.58.
The Dow, which does not list Apple as one of its components,
fared better than the other two indexes as Hewlett-Packard
rose 3.7 percent to $16.75 after JPMorgan upgraded its
rating on the stock and raised its price target to $21 from $15.