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Poor outlooks from Apple, Boeing pull US stocks lower

Jan 27 2016 19:52

New York - US stocks fell early Wednesday after Apple and Boeing shares plummeted on disappointing earnings forecasts.

About 50 minutes into trade, the Dow Jones Industrial Average was at 16 012.63, down 154.60 points (0.96%).

The broad-market S&P 500 fell 12.78 (0.67%) to 1 890.85, while the tech-rich Nasdaq Composite dropped 57.51 (1.26%) to 4 510.16.

Apple shares sank 5% after the tech giant reported only minimal growth in iPhone sales, its main money-maker, in its fiscal first quarter and forecast the first decline ever in iPhone sales in the current second quarter.

Boeing meanwhile slumped 10% after offering a disappointing 2016 outlook, saying revenues and deliveries could fall, and offering an earnings per share forecast well below what analysts were expecting.

The Wall Street action came as Federal Reserve policymakers meet for a second day, after raising interest rates in December for the first time in more than nine years.

While no change in policy is expected, all eyes will be on the Federal Open Market Committee's statement at 1900 GMT, to see what the Fed says about weak inflation and slow global growth.

"Most moves today, however, can be considered subject to change - up or down - knowing that the FOMC is certain to stir the pot one way or another with its directive," said Patrick O'Hare at Briefing.com.

Oil-related shares slid along with a renewed fall in crude oil prices. On the Dow, Chevron and ExxonMobil lost a respective 1.2% and 1.6%.

Caterpillar, a bellwether on the global growth outlook, shed 1.6%.

Dow member United Technologies gained 1.8% as earnings per share beat analyst forecasts even as fourth quarter sales of $14.3bn missed expectations.

US-traded Fiat Chrysler Automobiles shares slid 0.7% after the Italian automaker reported 2015 net profit well below expectations and down 40% from a year ago due to a poor performance in Brazil, Argentina and China.

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equities  |  wall street  |  international markets



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