Apple, other tech names hit as US stocks fall

A 3D printed Apple logo is seen in front of a displayed stock graph in this photo illustration taken on April 28, 2016.
A 3D printed Apple logo is seen in front of a displayed stock graph in this photo illustration taken on April 28, 2016. PHOTO: REUTERS

NEW YORK (AFP) - US stocks sat out an global equity rally that lifted shares in Europe and Asia on Friday (June 17), with the Nasdaq sinking due to weakness in Apple and other big tech names.

Apple tumbled 2.3 per cent on news that it faced a battle to keep selling iPhones in Beijing following an administrative order that concluded the tech giant violated design patents of Chinese maker Shenzhen Baili.

Apple said it is still selling the phones in China, pending an appeal of the ruling.

 

But other tech names were also weak, with Amazon, Facebook and Google parent Alphabet all losing at least 1.0 per cent.

The Dow Jones Industrial Average fell 0.3 per cent to 17,675.16.

The broad-based S&P 500 shed 0.3 per cent at 2,071.22, while the Nasdaq dropped 0.9 per cent to 4,800.34.

Jack Ablin, chief investment officer at BMO Private Bank, said shares of tech and growth stocks are being penalised by investors who prefer dividends as yields on US treasuries languish.

Coca-Cola and Dr Pepper Snapple Group both fell more than 1.0 per cent after Philadelphia became the first major US city to enact a tax on sugary drinks. PepsiCo, which sells snacks in addition to soda, fell 0.4 per cent.

Software giant Oracle climbed 2.7 per cent as fiscal fourth-quarter net income rose 2.0 per cent behind strong growth in some key service offerings in cloud computing.

Cosmetics company Elizabeth Arden surged 49.1 per cent on news it agreed to be acquired by Revlon for about US$870 million (S$1,170 million). Revlon rose 6.6 per cent.

Most petroleum-linked shares rose on higher oil prices, with Anadarko Petroleum gaining 3.0 per cent, Schlumberger 1.6 per cent and Devon Energy 3.4 per cent.