“U.S. stocks fell for the fourth time in five days as concern Europe’s debt crisis has further to go overshadowed a rally in technology shares led by Apple Inc.,” Rita Nazareth and Esme E. Deprez report for Bloomberg.
“JPMorgan Chase & Co. and General Electric Co. declined at least 1.7 percent to pace losses in the Dow Jones Industrial Average, while Wells Fargo & Co. sank 3.5 percent after being downgraded at Goldman Sachs Group Inc,” Nazareth and Deprez report. “Apple jumped 3.1 percent after Morgan Stanley raised its share-price estimate and added the stock to its list of ‘best ideas.'”
“The Standard & Poor’s 500 Index fell 0.6 percent to 1,081.01 at 3:29 p.m. in New York after slumping 0.9 percent earlier and climbing as much as 0.2 percent. The Dow retreated 67.79 points, or 0.7 percent, to 10,125.60 after tumbling as much as 112 points. The Nasdaq Composite Index was nearly even,” Nazareth and Deprez report. “‘The market is taking a moment and catching a breath,’ said Peter Kenny, a managing director in institutional sales at Knight Equity Markets LP in Jersey City, New Jersey. ‘The seizure of a Spanish bank and a higher Libor are adding to concern about the viability of financial institutions and slower growth. However, people are willing to consider the value of stocks that have fallen in prices. Apple, for instance, is cheap relative to projected growth.'”
Nazareth and Deprez report, “Apple rallied 3.1 percent to $249.88. The maker of iPods and Macintosh computers may rise 28 percent from last week’s close as investors embrace market share gains for the iPhone and demand for its iPad computer, according to Morgan Stanley. Analyst Kathryn Huberty raised her share forecast to $310 from $275 and put the company on a list of ‘best ideas,’ according to a note to clients today. She kept the shares as ‘overweight,’ a rating she’s held September.”
Full article here.