Wall Street slumps in broad decline, Apple selloff pressures Nasdaq

“U.S. stocks dropped 1 percent in a broad decline on Wednesday, with materials and energy shares leading the way lower as commodity prices dropped, while a selloff in Apple shares pressured the Nasdaq,” Ryan Vlastelica reports for Reuters. “Apple Inc dropped 5.8 percent to $401.31, the stock’s worst daily decline since Jan. 24 after chipmaker Cirrus Logic gave a disappointing revenue outlook that raised concerns about weakening demand for Apple products. All but two of the S&P 500’s 10 major sectors dropped more than 1 percent while about four-fifths of stocks traded on the New York Stock Exchange and Nasdaq were lower.”

Vlastelica reports, “The Dow Jones industrial average was down 174.93 points, or 1.19 percent, at 14,581.85. The Standard & Poor’s 500 Index was down 28.51 points, or 1.81 percent, at 1,546.06. The Nasdaq Composite Index was down 72.28 points, or 2.21 percent, at 3,192.35. The S&P information technology sector fell 2.6 percent. In addition to Apple Inc, which neared breaking below $400 per share for the first time since December 2011, Texas Instruments shed 4.6 percent to $34.10.”

“Adding another element of uncertainty to the market, the U.S. Secret Service said that a letter addressed to President Barack Obama containing a suspicious substance was received at a White House mail screening facility on Tuesday. The letter came on the heels of the bombing on Monday in Boston,” Vlastelica reports. “‘The ongoing sequence of these terrorist incidents… doesn’t create an environment for good investor psychology,’ said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama, who speculated that investors could move into government bonds from stocks if such events proliferated.”

Read more in the full article here.

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32 Comments

  1. Keep sitting silent Tim and board, seems to be working out so far—-Steve Jobs would not have been pushed around like this by Wall Street–did the board and Tim learn nothing under his watch !

      1. Good question. Nothing probably other than fork out some more divident. Cook is probably a good manager and that’s it. He has no creative vision of his former boss. Let’s face it from this point on Apple will just be a value stock with average growth potential.

      2. Tim Should:

        1) when NYT, WSJ, Frorbes etc makes erroneous articles and fake facts the should issue statements correcting them. Yeah they can’t fight back every negative article BUT not fighting at all is crazy.

        when workers threaned suicide at the Foxconn MICROSOFT plant and articles and news clips said Apple (I saw them myself) why didn’t Apple point out it wasn’t Apple? Today many ordinary people (who don’t read geek tech news like MDN) BELIEVE apple is abusing children in its China factories instead of being the top 1% in employee responsibility. My accountant believes it, a smart dude , he reads NYT and WSJ, an ethical person he told me to ‘SELL MY AAPL SHARES’ !!

        Investors don’t like companies who don’t defend itself (and therefore their stock investments)

        Note when analysts whacked apple over not having netbooks Jobs went on the attack saying Apple couldn’t build a sub $500 notebook that didn’t suck and current netbooks were piles of junk , flimsy with cramped keyboards etc. He pushed the iPhone as better alternative. (IPad wasn’t out yet but although it was ON the DRAWING BOARDS Jobs didn’t sit back and just wait knowing that sometime in the future he would have product. He went and DEFENDED BEFORE the new product launched. Today too many are saying apple should say nothing and just wait to launch new products… )

        2) Cook shoud Push hard at every opportunity that Apple is doing well and its products are selling. It’s income growth is 60% yet Msft has much higher P.E (14 vs 9) showing that the PERCEPTION of apple is terrible. Goog which is basically making no money off its major initiative of the last 5 years Android ( in fact losing money if you count Motorola losses ) has a P.e DOUBLE appl !

        Goog executives push android as a success at the time . They have Full Time evangelists going round the world saying apple is doing lawsuits because apple cannot innovate. Guy Kawasaki famous former apple evangelist has joined Google!

        If Apple had Goog P.E the stock would be way over 700 now.

        That shows Cook has done a miserable P.R job in convincing investors apple is doing well.

        Jobs took every opportunity pushing the positive apple story. When he was on the cover of Time , Newsweek, All Things D, it was always apple stuff were ‘magical, next great thing’ etc. So much so that people starting calling it ‘reality distortion’ BUT IT WORKED. Apple had the highest positive brand recognition around.

        Jobs knew reporters like Mossberg personally (Mossberg came to his house) and analysts like Bajarin. I bet you if he read something he didn’t like he would be giving poeple the ‘Phone Call’.

        #3) besides P.R what the heck happened to Advertising?

        why no ads for mac mini, iMac etc.
        Macs have 5% market share, iPhone have 30% yet apple doesn’t push it. Msft even with all its problems STILL makes billions of P.C software alone (apple makes more as it makes hardware as well).

        LOOK WIN 8 DUD YET NOT ONE AD AIMED AT IT? NOT ONE MAC OS IS BETTER AD !!! apple used to have dozens of Mac PC guy ads but none now… Mountain Lion is great software but not one ad. Most ordinary folks and the press believes OSX is the same as Windows….

        WIN 8 Vista Dud is a Golden Opportunity for macs to gain significant marketshare ( no matter how many tablets are sold there will still be hundreds of millions of people who need traditionalo PCs) but apple sits…

        Apple ‘missed’ analysts expectations and started its fall from 700 when it ‘missed’ by just $200 million. if It had sold a few more macs maybe it could have made more money and hit the targets and the stock would still be at 700?

        The James Bond movie Skyfall cost $100 m approx to make. Thee film company spent TWICE that on Advertising. The movie grossed over $1 Billion. (If they didn’t spend that ad money I don’t think it would have made anywhere that much.)

        Samsung MAKES FUN OF APPLE in superbowl ads etc for YEARS now and apple does nothing! Some have argued with me that apple shouldn’t attack SMALLER companies .. BUT Samsung sells MORE smartphones than apple (so in that way its not smaller). Take the gloves off, whack them!

        4) When an analyst firm made questionable call on Rim Z10 sales Rim CONTACTED THE CANADIAN GOVT and the U.S SEC to investigate! You might not like Rim but in this case I bet RIM PUT THE FEAR OF GOD IN ANALYST FIRMS.

        meanwhile people like Doug Kass , hedge fund owner, on CNBC manipulates apple stock like a yo yo (much worse than the firm with Rim). Kass says apple is doomed because he has inside info of bad sales, he makes money on shorts . then he sheephishly says his info is wrong and we find out he has bought a whole bunch of aapl at the low point . He announces that the ‘truth’ is apple is doing well and he rides aapl up again. And he REPEATS the process with the conniving of CNBC.

        But does apple call the SEC…… nope.
        Multiply Kass a many times with all kinds of other predators.


        etc etc etc
        I write a lot more on what I think Cook should do to help investors but the post is already too long…

        (i used to be an ad pro. ).

          1. Don’t worry about it. This isn’t school. You got what you needed off your chest. If I got off my chest what I wanted to say, most of it would be censored. Let’s face it, Apple is being run by wimps. I’d have no problem if the stock was doing half-way decent , but right now I want to see some Apple sledgehammers being waved over smartphone rivals and I know that isn’t going to happen. Those billions of dollars could be put to much better use than just rolling around in it.

        1. I just saw another Surface Pro ad on TV. It’s the same commercial every time. They are all sitting around a round conference table with some idiot breakdancing on the table. Unbelievable! With all the money that Apple has and supposedly all the geniuses that work there and they can’t come up with good commercials anymore? Yeah, that’s poor leadership. I understand not lowering yourself to fight back against Samsung, although I think at this point you have to do that, but to not run good ads is unconscionable. You’ve got billions and billions and billions of fucking dollars Tim! Do something with it!

        2. to add:

          if Apple does not DEFEND itself then it will be bashes and fake mongers like Mike Daisy who will DEFINE IT. The negative spin on apple will become accepted ‘truth’.

          i shudder to read apple articles in my local newspaper now as they always preface it with ” the failing tech giant, lost it’s innovation to companies like Samsung, dropping sales… ” etc. The local paper is just parroting what it thinks is the ‘Truth’.

          who wants to invest in a ‘failing company’ that has ‘lost its innovation’ ?
          (to be Clear, i’m not agreeing with the paper but I’m saying the fake facts are now being accepted as truth because apple is not defending)

          Note also that companies like Samsung spend many times Apple in worldwide advertising. See the charts in Asymco.com. All the ad spending helps define the negative image of apple.

          Apple spends on marketing like it spends on lobbying: Google spends 9 times more than apple on lobbying and its apple which is facing a stupid DOJ lawsuit on ebooks…

        3. I actually didn’t think anyone had a clue on decent ideas but I like what you wrote. It seems like most posts are general blanket ideas with an insult. You wrote valid options that will at least dispell some of the free for all that tech competition is getting away with. It will likely be better than little that apples PR is doing.

    1. At this point I suggest the complete opposite. Apple Inc. needs a refresh on a few fronts if the expectations are that products will continue to roll of the shelves. The MBP 15R display issues, the old and tired iOS and OSX need a serious kick in the pants and affordability needs to become part of the discourse at Apple. And I bet good money that they are on it!

      Too much fighting with Samsung is not helping either and therefore, taking on Wall Street will not do them any good either.

      Mr. Cook needs to pick his fights in order to win the battle and your views are not that ticket. Apple Inc. needs to stop pushing out minor product enhancements and hit hard with a few innovative products the likes we have never seen before. A la iPhone if you will.

  2. Look guys, I’m a fanboy but I’m not delusional. I get sick of how vehemently everyone here defends Apple and refuses to believe things like a falling stock is for valid reasons.

    Apple has made some really good moves over the past year but also some crap ones. Non-Retina iPad Mini? Funny how Apple doesn’t release any hard sales figures for this product. And I never see anyone in the wild using them. Basically never.

    Maps?

    iWork update?

    Mac Pro update?

    iPad 3 spec bump? Are you kidding? Well, they would have had an iPad 4 event a month ago but that didn’t happen. So no buzz… and no Apple TV yet.

      1. No it is not invalid. I travel and work in the tech industry. There are barely any iPad Mini’s in the wild from what I’ve seen. That’s valid, full stop.

        That doesn’t mean there aren’t any in places I haven’t been. It’s just an indication to me from what I’m seeing and experiencing personally and in business… iPad Minis aren’t out there.

        We dumped ours and so did some other employees. The screen sucks. We all have iPad 3s… totally skipped the spec bumped iPad 4.

        1. What WILL be valid will be Apple’s April 23rd quarterly results which I think will put many concerns to rest.

          * Maps has been continuously improved since it was introduced. iOS 7 should see it clear a lot of mental hurdles for many.
          * Mac Pro’s are imminent. Should they have come before now? Well yeah but hopefully the wait will have been worth it.
          *iPad 4 is already out since 2012 and selling well along with the iPad Mini. iPad 5 & iPad Mini 2 coming. Just saw this headline: “Sold out: iPad 5, iPad mini 2 release date imminent as iPad 4 vanishes”
          http://www.stableytimes.com/news/sold-out-ipad-5-ipad-mini-2-release-date-imminent-as-ipad-4-vanishes/

          * iWork? Yeah I’d like to see it become more of a Microsoft Office killer.

    1. SFGH : Good points. An iPhone 5 S isn’t going to impress many people either. An upgrade to the iPhone 5 is just not enough. I’m sure it will be a great phone but consumers are looking for a larger iPhone option. Apparently that is not coming. And even fanboys known that it is needed. Yesterday. And never apologize for telling the truth. Something that most Fanboys find it impossible to do.

      1. GM, somehow, if Apple came out with teleportation in the next model phone, I do not think you would be suitably impressed.

        Larger phone??? use Skype on your iPad mini with wireless. Or your iPad and Skype,,,, heck go for Skype on your MacBook Air, It will get you a 15 inch screen…..

        And just for the record… I do not consider myself a “fanboi” just because I do not bitch constantly against Apple. Sadly I have been in this world for long enough to learn how things ACTUALLY work. And while I hold Apple accountable, I do so in the real world and not in some “japan-a -mation” world where everything is possible, just cause you want it to me.

        End of rant.

        1. iTeleporter sounds great! But I already brought that up long ago. I’m sure that R & D is working on it by now. Odd how you try to blame me for things that Apple does poorly. Kill the messenger? Larger iPhone. That’s right a larger iPhone. It should’ve been here by now but it isn’t. The stock price certainly reflects that. And just because you don’t want it doesn’t mean that others don’t. When Apple finally delivers a larger iPhone (and they will) it will sell like hotcakes. Actually I’ll bet that you do want a larger iPhone but you’re afraid to admit it. Just like many, you’re pissed that Apple hasn’t brought it to market yet. But rather than be honest about it you’d rather rant against people who simply point out the obvious. People don’t want to use their iPad or their iPad mini as a phone. People simply want a larger iPhone. For you to bring up the iPad in the conversation proves that you’re just pissed off. Because obviously that is not a good solution. You sound like a 10-year-old who’s having a bad day. Or is it that you’re long AAPL and way, way, way under water? Yeah, sounds like the latter.

      2. It’s the lull…

        Why no Retina iPad Mini? Anybody know sales numbers?

        Anybody know how the iPod Nano with its non-Retina screen is doing?

        No real Mac Pro upgrade in 4 years?

        iPad 4 is a spec bump?

        This is what’s got me… their ad and innovation machine seems like it’s at a standstill.

    2. SFGH, actually you are delusional. Or so old school that you still do not get it.
      You are spouting MARKET SHARE, Stock price, and other currently meaningless words. According to a recent report, Apple is taking over 70% if the WORLD PROFIT (you know, actual money and not some stupid number that means nothing) in the computer sales, Smart phone sales, iPod sales, and iPad / tablet sales.

      APPLE is making over 70% of ALL THE PROFIT (not like Amazon, Billions sold, almost NO profit) in all these categories.

      So what do you want Apple to do? Maybe act like Dell and get market share and loose all its money, or Microsoft (spend 6 BILLION and write it off as a lost) ???????

      If you suddenly need money and you want you shares to suddenly jump in value, I understand. You are wrong, but I would understand. I would like to win the lotto myself, but that has nothing to do with the REALITY of this situation.

      Just saying……

      1. Share price. Meaningless? You lose all credibility with that comment. Try telling that to the people who are down $300 per share. People who failed to get out when they were ahead. People who would give anything to be able to go back to September and have a do over. Because you know what? They’d all sell. Every one of them. There’d be no buy-and-hold forever with any of them. But they can’t do that. And you can’t either. Share price is why you invest. It’s an investment. Not a hobby. Share price. It’s what matters.

        1. Many Apple shareholders would like to place the blame of losing all that money on Andy Zaky, but he is nowhere to be found. He’s hiding on a deserted island somewhere like Tom Hanks character in the movie Castaway.

          Andy Zaky doesn’t deserve a do over even in his next life. Man, that huckster just literally killed his followers with loads of Apple twaddle. The famous Apple slingshot. Death by slingshot.

          1. But really, who the hell follows Andy Zaky? If you have a plan you don’t need to follow anyone. If you just buy stock in a company and put it under your bed and forget it because you think it’s a great company (cue all the buy and hold forever investors here), that’s no fucking plan! An investor needs to monitor his investment. That doesn’t mean daytrade. That doesn’t mean market timing. That just means having a plan to know when you’re going to take your profit. Profit remember what that is? That’s why you invested! Life isn’t always that complicated. Knowing when you made a profit and being smart enough to take that profit is pretty goddamned simple.

      2. eldernorm:

        “You are spouting MARKET SHARE, Stock price, and other currently meaningless words.”

        NO, I AM NOT. You are delusional for thinking and saying this. I never spouted marketshare, stock price, or any other meaningless words. My criticism is objective and based in reality. Again:

        “Maps?

        iWork update?

        Mac Pro update?

        iPad 3 spec bump? Are you kidding? Well, they would have had an iPad 4 event a month ago but that didn’t happen. So no buzz… and no Apple TV yet.”

        Shut up.

  3. I live in a small country town that is still PC (windows) minded and the county for years was one of the poorest counties in the nation. Yet, I have seen quite a few “Mini’s” here. When I go to a population center 40 miles away (nearly a million) I still see Mini’s in use. Quite common already.

  4. Good day. It finally reached my targeted buy level. But I’ll give a few more days. I would be delusional to hold Apple for long term even if I buy, just for short term swing back gains. Since the day Apple announced iPhone 5 last year, my loyalty to Apple was over. Tim Cook & his deputies have no clue and Apple’s rampant innovation days under Jobs were over guys.

    1. I’d consider holding off buying until Wednesday. As to your comment about holding long-term and loyalty, you owe no company anything. That’s where people get in trouble. They fall in love with a stock. They fall in love with the company. They lose sight of what they’re doing. You invest for one reason and one reason only, to make a profit. And there better places to put your money then AAPL.

    2. Measuring Apple with Wall Street is wrong. Those that want Apple to be like any other company, start selling cheap phones, etc. are not the way Apple has measured success. Name a manufacturer of cheap phones that generates more attention, more profit from the mobile market than Apple? None right?

      People now get anxious about Apple needing to release a new product every 6 months. This is not the Apple way. Apple spends a lot of time doing R&D and testing before launching a product. The iPhone took incremental updates when Steve Jobs was alive, BTW. You complainers are nuts.

      Go get a Samsung already if you want to be cheap and buy Samsung stock and see where that takes you.

      1. I’ll do just that, MEES. I am now in the market for a new phone. And after having an iPhone since 2008 I am ready to put Apple on probation and get a HTC ONE for a change, at least I will have a very well designed phone and free upload/match 20,000 songs in the cloud from Google Music to boot. A year and half from now if Apple again has a killer phone I am willing to jump back in. If not, bye-bye Apple.

  5. Just a general note to the anti-fanboi people here. You know, the ones that want to hold Apple accountable in the extreme and yet allow anything samdung to be OK cause its shiny plastic in a new color and even bigger… (anyone here remember Boom Boxes???)

    I have given up reading yahoo – financial articles cause even if the article is ok, there is such a massive pro samsung and anti- apple crowd that its just a massive crowd rant.

    Apple horrible, no good, very bad cause they make money and are not free.

    Samsung good cause shiny, plastic, break and have to buy one every year (great excuse).

    And I would hate to see that happen here. Please keep the “JUMP into POLITICS” at every chance comments and the Apple is horrible cause its not perfect comments to a minimum. PLEASE.

    Just a thought,
    en

    1. When will fanboys get off this Samsung phones breaking routine? There are millions of iPhones with broken displays and glass backs. Stop dragging in Samsung into every Apple discussion as it makes you come off like a little girl.

      I appreciate Apple for what it has accomplished for 6 of their 37 years in the game, but this game is not about yesterday but it is all about what tomorrow will bring and Apple has been bringing a lot os OS issues, MBP-R issues, a lack lustre iPad mini and an iPhone 5 that failed to keep up with the trend for bigger display phones.

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