Einhorn loses bull call against Apple
U.S. stocks opened lower on Friday after Apple shares fell for a fourth day on concerns about its slowing growth and the opening of Chinese markets on Friday had faded.
This is the first time Wall Street opened with two straight days of losses since late September.
The Dow Jones Industrial Average was down 237.82 points, or 1.04%, at 26,578.73, while the S&P 500 was down 16.98 points, or 0.63%, at 2,811.23. The Nasdaq Composite was down 27.47 points, or 0.45%, at 7,358.12.
Chinese stocks, which made their first swing open on China’s mainland exchange on Friday morning, looked set to open in negative territory, although the sell-off was expected to be limited by authorities’ steps to support markets, helped by billions of dollars in state cash.
“So far I do not think there is much shock or awe in the beginning of this Friday trading,” Gordon Charlop, managing director at Rosenblatt Securities said in a note to clients.
Apple , the world’s largest company by market capitalisation, fell 3.1% after regaining some ground earlier this week and on Thursday, sparked concern that smartphone sales in major markets had peaked.
All the three major U.S. indexes had fallen more than 3% this week as confidence in the S&P 500 was knocked off its February peak.
Technology shares dropped again, with the Philadelphia Semiconductor index down 1.6%.
The S&P information technology index, the largest sector weight, has lost 6.8% this week, while the financial index lost 3.4%.
The earnings season will kick into full gear in the next week with a slew of reports from big banks, including JPMorgan Chase and Wells Fargo, which will help investors gauge whether the valuations of the market are justified.
Recent market action will keep investors on their toes, and given that shares usually surge after the Thanksgiving holiday, the sellers will have plenty of opportunity to cast their doubts about the direction of the markets in the coming days.
At Friday’s open, European shares were the main decliners, with the pan-European STOXX 600 index down 1.7%.
Europe’s pharmaceutical shares dropped 2.7%, a day after Pfizer led a broad rise in the sector.
The US dollar index, which tracks the greenback against a basket of six major rivals, edged higher 0.1% in early trading.
Advancing issues outnumbered declining ones on the NYSE by a 1.96-to-1 ratio; on Nasdaq, a 1.61-to-1 ratio favoured advancers.