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Apple, other tech names hit as US stocks fall

New York - US stocks sat out an global equity rally that lifted shares in Europe and Asia on Friday, with the Nasdaq sinking due to weakness in Apple and other big tech names.

Apple tumbled 2.3% 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%.

The Dow Jones Industrial Average fell 0.3% to 17 675.16.

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

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

Coca-Cola and Dr Pepper Snapple Group both fell more than 1.0% 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%.

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

Cosmetics company Elizabeth Arden surged 49.1% on news it agreed to be acquired by Revlon for about $870m. Revlon rose 6.6 percent.

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

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