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Wall Street craters as Apple slumps; Nike beats

Thursday, September 25, 2014 - 02:39

Summary: Two-day slump in Apple shares wipes away around $25 billion of the tech giant's market value and leads Wall Street to its worst day since July; Nike beats forecasts. Conway G. Gittens reports.

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No place to hide in Thursday's sell-off with just about all of the 10 major sectors in the S&P 500 down by more than one percent. Blue chips tumbled 264 points, the biggest drop since July 31st. The S&P 500 fell 32 points. The Nasdaq slumped 88 points, a plunge of roughly two percent. Apple was the biggest culprit in the market. In less than a week - it had to pull a software fix to its newly launched operating system, iOS 8, due to a growing list of complaints. Also, "Bendgate" isn't dying down. This YouTube video from Unbox Therapy showing the bendability of the iPhone 6 plus - now viewed nearly 29 million times. Even rivals like Samsung and BlackBerry are making fun of consumer complaints the large smartphone bends inside pant pockets. Shares of Apple - down close to 4 percent in heavy volume - to close below $98. Other factors dragging the market down: a strong dollar, which will hurt third-quarter corporate results when they start rolling out in the next few weeks. The dollar - up six percent since the close of the third quarter last year.... Economic data were mixed. Orders for large-ticket items, known as durable goods, plunged by the biggest on record, with the absence of Boeing's record plane orders seen the prior month. Jobless claims - up for the week but still at levels that suggest job growth… And then there's a bearish call from Cantor Fitzgerald. The research firm beliefs the breakdown of small cap stocks indicates a broader market sell-off is brewing. But while many are expecting a market breakdown, Peter Cardillo of Rockwell Global Capital says gains can be sustained thanks to the Federal Reserve. SOUNDBITE: PETER CARDILLO, CHIEF MARKET ECONOMIST, ROCKWELL GLOBAL CAPITAL (ENGLISH) SAYING: "I don't see them raising rates until the latter part of the second quarter and so I think a lot of that is already baked in and with the economy growing close to three percent, corporate earnings should start to do well. There are all indications, I think, that point to a stock market that is getting ready to have another run on the upside and that will probably come from good third-quarter earnings." Good news from Nike after the close. The world's leading athletic footwear company easily topping forecasts. Demand for next quarter tracking ahead of the same time the year before. Turning to Europe - losses of one or more percent on concerns the Euro Zone may be headed for another recession.

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Wall Street craters as Apple slumps; Nike beats

Thursday, September 25, 2014 - 02:39