by Marc Bastow | April 17, 2013 4:43 pm
Apple (NASDAQ:AAPL) continued its spectacular crash to earth on Wednesday, dropping 5.5% — and at one point falling below $400 per share — to touch a 52-week low.
Apple will report earnings next Tuesday but the drop, along with disappointing news in the banking sector, unnerved the markets, as Tuesday’s rally gave way to a broad sell-off throughout the day.
The tech-heavy Nasdaq dropped took it on the chin, losing 1.84% to close at 3,204.67, while the S&P 500 fell 1.43% to end at 1,552.01. The Dow, which saw all but four of its components lose ground, fell 0.94% to end at 14,618.59.
Investors deserted Apple after an earnings warning its chip supplier Cirrus Logic (NASDAQ:CRUS) triggered concerns over first-quarter revenue weakness on slowing iPhone demand. Cirrus fell almost 16% on the day, while chip-makers Analog Devices (NYSE:ADI) and Texas Instruments (NASDAQ:TXN) both fell over 4% on the news.
Technology Dow components Hewlett-Packard (NYSE:HPQ, -2.57%), and Cisco (NASDAQ:CSCO,-2.50%) also fell on the day, while Google (NASDAQ:GOOG) shed just under 2%.
In the banking sector, Bank of America (NYSE:BAC) led off the day by announcing it missed first-quarter earnings estimates by around 2 cents per share despite record revenues. The Dow component was hammered, dropping nearly 5% on the day. Sectormates JPMorgan (NYSE:JPM, -3.51%), Goldman Sachs (NYSE:GS, -2.43%), Citigroup (NYSE:C, -1.97%), and Wells Fargo (NYSE:WFC, -1.35%) fell as well.
Toy maker Mattel (NYSE:MAT) managed to buck the trend, as first quarter net profit quadrupled and the stock gained gained just under 2% on the news.
A big day of earnings releases on Thursday includes notables Google — InvestorPlace‘s Stock of the Week – Morgan Stanley (NYSE:MS), Verizon (NYSE:VZ), IBM (NYSE:IBM) and Microsoft (NASDAQ:MSFT).
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long AAPL, MSFT, YHOO, and VZ.
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