US stocks fall, Apple plummets

by **hlk** Tue 11 Sep 2012, 08:22

NEW YORK: US stocks fell Monday as investors digested an unexpected
decline in consumer credit, another weak signal on consumer spending,
and Apple plummeted ahead of its expected iPhone 5 launch.

The Dow Jones Industrial Average finished down 52.35 points (0.39 percent) at 13,254.29.

The
SandP 500-stock index dropped 8.84 (0.61 percent) to 1,429.08, while
the tech-heavy Nasdaq shed 32.40 (1.03 percent) at 3,104.02.

Apple
was a big drag on the Nasdaq and the SandP 500, tumbling 2.6 percent
ahead of Wednesday's expected announcement of the next generation of
its popular iPhone, dubbed the iPhone 5.

"US equities finished
lower in lackluster action, losing steam toward the close, as traders
appear to (again) be waiting for major events to unfold in the latter
part of the week," said Charles Schwab and Co. analysts.

The
Federal Reserve opens a two-day policy meeting Wednesday amid
speculation the central bank will unveil support for the flagging
economy.

The indices accelerated their losses in the final hour
of trade after the Fed reported consumer credit fell in July after 10
months of gains, raising concerns about consumer confidence amid high
unemployment.

The blue-chip Dow was dragged down by Intel, off 3.8 percent, after it slashed its third-quarter revenue outlook.

Other major Dow decliners were Boeing, down 2.5 percent; 3M, 2.3 percent; and Caterpillar, 1.1 percent.

Computer
giant Hewlett-Packard rose 0.8 percent after announcing that job cuts
under a major restructuring program will total some 29,000, or 2,000
more than previously estimated.

AIG fell 2.0 percent after the Treasury Department launched a public offering to sell $18 billion of the giant insurer's stock.

US-traded
BP shares edged up 0.1 percent. The British oil giant plans to sell
US$5.55 billion in oil assets in the Gulf of Mexico to Texas rival
Plains Exploration, down 10.5 percent.

Navistar International
slid 3.1 percent after activist investor Carl Icahn pressed the company
for more representation on the board. -- AFP