A significant selloff in the biggest stock on the planet clashed with news of a major layoff in the financial sector to create something of a pair of clashing markets Wednesday.
Apple (NASDAQ:AAPL) took center stage as investors jumped out of the stock on an IDC report suggesting mobile devices powered by Google (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) will gain ground over the next five years. AAPL fell more than 6%, dragging the Nasdaq to a 0.77% loss (to 2,973.70) and holding the S&P to a muted 0.16% gain (to 1,409.28).
Meanwhile, the Dow rallied 0.64% to 13,034.49 thanks primarily to bank stocks, which were rewarded thanks to Citigroup‘s (NYSE:C) willingness to cut its way to profits. C shares rose more than 6% after announcing plans to cut 11,000 jobs and take a $1 billion fourth-quarter charge to “reposition” the company. Dow components Bank of America (NYSE:BAC, +5.7%) and JPMorgan (NYSE:JPM, +1.6%) rose in sympathy.
Speaking of sympathy, shares of Select Comfort (NASDAQ:SCSS) fell nearly 10% after Mattress Firm (NASDAQ:MFRM) reported weakening sales and warned of lower revenues through 2013. Of course, MFRM took the brunt of it, falling more than 20%. But the fallout was broad, even snagging coil spring manufacturer Leggett & Platt (NYSE:LEG, -2.4%).
Pandora (NYSE:P) lost nearly 18% after announcing a projected loss in the fourth quarter thanks to higher infrastructure spending and expected caution among advertisers as the fiscal cliff looms.
Nokia (NYSE:NOK) shares hit a seven-month high, rising 12% on news it’s planning a deal to sell its products through China Mobile (NYSE:CHL), the largest mobile operator in the world with more than 700 million subscribers (but no contract to sell iPhones).
Finally, investors in coffee titan Starbucks (NASDAQ:SBUX) reacted with a slightly jaded eye and dropped the stock just under 1% as the company announced its intention to open another 1,500 locations over the next five years, adding to its existing 11,000 stores. The company also announced it will offer a $450 gift card made of steel.
With that, its time to freshen up another cup of coffee.
- McMoRan Exploration (NYSE:MMR): Up 87% ($7.36) to $15.82. (Read more here)
- Supervalu (NYSE:SVU): Up 13.7% (35 cents) to $2.90.
- Arch Coal (NYSE:ACI): Up 7.4% (50 cents) to $7.22.
- Qihoo 360 (NASDAQ:QIHU): Down 6.6% ($1.72) to $24.30.
- PulteGroup (NYSE:PHM): Down 5.2% (89 cents) to $16.20.
- Tesoro (NYSE:TSO): Down 4.6% ($1.87) to $38.93.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long AAPL and MSFT.