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Apple plunge hits Nasdaq, Dow higher

Jan 25 2013 07:54

New York - Apple's shares plunged more than 12% on Thursday after its earnings disappointment, but the Dow held up in positive territory with help from a Boeing rebound.

Netflix meanwhile soared 42.2% in heavy trade after showing strong growth in subscribers, driving income to $945m in the fourth quarter.

The Dow Jones Industrial Average gained 46.00 points at 13,825.33.

The broad-based S&P 500 ended flat, adding just 0.01 at 1,494.82.

The tech-heavy Nasdaq Composite fell 23.29 to 3,130.38.

The mixed finish followed disappointing revenues and guidance from Apple after the markets closed on Wednesday.

Shareholders of Apple, the biggest US company by market capitalization, punished the stock. Apple shares dropped 12.4% to $450.50.

The Apple cloud muted the impact of numerous upbeat global economic reports including stronger-than-anticipated reads on Chinese manufacturing output and eurozone business activity, Charles Schwab & Co said in a research note.

The positive news continued in the United States, where weekly US jobless claims fell for a second straight week.

Outside technology, "nearly all other sectors gained ground thanks to better-than-expected profit tallies and encouraging economic data," Well Fargo Advisors analysts said.

Dow member 3M reported in-line profits; shares were up 0.2%.

Cisco Systems was the strongest Dow gainer, up 1.9%.

Defense contractor Lockheed Martin's shares slid 2.9% after it reported earnings that fell short of analyst expectations.

Lockheed projected that 2013 profits would come in above the 2012 levels, but it also acknowledged it faces the "uncertainty" of possible defense cuts in Washington.

US airline United Continental rose 2.2% after reporting revenues that bested expectations despite an overall loss for 2012.

Biotechnology giant Amgen offered an improved 2013 outlook but shares fell 0.5% following lower 2012 profits.

Bond prices fell. The yield on the 10-year US Treasury rose to 1.84% from 1.83% late on Wednesday, while the 30-year yield increased to 3.04% from 3.03%. Bond prices and yields move inversely.

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