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Markets continue to drop; Apple's iPhone miss

Monday, Jan 27, 2014 - 02:19

Jan. 27 - Summary: Apple sold fewer iPhones than forecasts; Markets stabilize ahead of Fed meeting; Caterpillar beats; AT&T won't bid for Vodafone; New home sales fall. Bobbi Rebell reports.

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After the closing bell on Monday, Apple reported iPhone sales that missed forecasts and the company also lowered forward guidance. The news weighed on the stock. The company's overall earnings beat expectations, and Apple declared a cash dividend of $3.05 a share. During the regular trading session, U.S. stocks continued to fall. The Dow down for five days in a row, the largest five day percentage decline since April of 2012. Technology stocks in particular were weak, dragged by big names including Microsoft and Google. Investors also wary of more pressure on the market if the Fed continues to pare back its bond buying program. Its two day meeting starts Tuesday. That could further pressure stocks already roiled by a flight from emerging markets last week. Vijay Chopra is a portfolio manager at Roosevelt Investments. (SOUNDBITE) VIJAY CHOPRA, PORTFOLIO MANAGER, ROOSEVELT INVESTMENTS (ENGLISH) SPEAKING: "This loss of stimulus is hurting these markets. It kept the markets up, people reaching for yield, and even in emerging markets to get yield. And now the currents have turned, they are now coming back, the capital is coming back." AT&T is saying 'no, thank you' to bidding for Britain's Vodafone - for now. Banking sources saying a deal was put off by the U.S. NSA spying scandal and a surge in European telecom shares. Caterpillar stock jumped after aggressive cost cutting overshadowed sluggish sales, leading to better than expected quarterly profits. Caterpillar also saw an uptick in demand for its building equipment. And, in fact, the building business is showing signs it remains intact. While sales of new homes fell more than expected in the month of December, the number of houses sold in the year 2013 was the highest since 2008, according to the Commerce Department. A separate report from Markit said its January services sector gauge rose to a 4-month high, a signal the economy is off to a strong start. Royal Caribbean Cruises forecast a stronger-than-expected profit for 2014, supported by fourth-quarter earnings that comfortably beat Wall Street estimates. This despite recent troubles, including cutting a Caribbean cruise short after more than 300 people got sick just days ago. Carnival Corp shares were also up on the news. In Europe, telecoms and energy stocks dragged down the markets, leading European shares to their lowest level in more than a month.

Markets continue to drop; Apple's iPhone miss

Monday, Jan 27, 2014 - 02:19

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