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Wall Street closes lower in Apple shares, bank stocks – SABC News

Wall Street ended lower on Monday as banking stocks erased earlier gains and Apple shares fell on a report that the company plans to slow hiring and spending growth next year.

After posting solid early-session gains following gains by Bank of America Corp and Goldman Sachs Group Inc, the S&P financials sector weakened at the close.

Apple shares reversed course and closed up 2.1% at $147.1 on a Bloomberg report that said the company plans to slow hiring and spending growth next year at some units to deal with a potential economic downturn.

Goldman Sachs advanced 2.5 percent as it reported a smaller-than-expected 48 percent drop in second-quarter profit, helped by strong fixed-income trading.

Concerns about a bigger one-percentage-point rate hike at the end of July eased after remarks by Fed officials last week that policymakers could stick to a 75-basis-point hike.

“It’s really hard to sustain upward momentum,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. And that’s kind of the story of bear markets.”

The Dow Jones Industrial Average fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite fell 92.37 points, or 0.81%, to 11,360.05.

Nine of the S&P 500’s 11 major sectors lost ground, with health care and utilities experiencing the biggest percentage declines, while energy saw the biggest gain.

Earnings for major technology companies will be closely watched next week after their shares have come under huge selling pressure for most of this year.

Among other tech stocks, Google parent Alphabet fell 2.5%.

IBM was down 1.3%.

Volume on US exchanges was 10.63 billion shares, compared to the full session average of 12.15 billion over the past 20 trading days.

Advancers outnumber decliners on the NYSE by a ratio of 1.20 to 1; on the Nasdaq, a ratio of 1.06 to 1 favored decliners.

The S&P 500 posted one new 52-week high and 31 new lows; The Nasdaq Composite recorded 30 new highs and 78 new lows.

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