Apple Leads the Drop — Wednesday’s IP Market Recap

by Marc Bastow | April 17, 2013 4:43 pm

IPMarketRecap Apple Leads the Drop    Wednesdays IP Market Recap[1]Apple (NASDAQ:AAPL[2]) 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[3]) 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[4]) and Texas Instruments (NASDAQ:TXN[5]) both fell over 4% on the news.

Technology Dow components Hewlett-Packard (NYSE:HPQ[6], -2.57%), and Cisco (NASDAQ:CSCO[7],-2.50%) also fell on the day, while Google (NASDAQ:GOOG[8]) shed just under 2%.

In the banking sector, Bank of America (NYSE:BAC[9]) led off the day by announcing it missed first-quarter earnings[10] 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[11]) 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[12] — Morgan Stanley (NYSE:MS[13]), Verizon (NYSE:VZ[14]), IBM (NYSE:IBM[15]) and Microsoft (NASDAQ:MSFT[16]).

Three Up

Three Down

Marc Bastow is an Assistant Editor at As of this writing he is long AAPL, MSFT, YHOO, and VZ.

  1. [Image]:
  2. AAPL:
  3. CRUS:
  4. ADI:
  5. TXN:
  6. HPQ:
  7. CSCO:
  8. GOOG:
  9. BAC:
  10. announcing it missed first-quarter earnings:
  11. MAT:
  12. InvestorPlace‘s Stock of the Week:
  13. MS:
  14. VZ:
  15. IBM:
  16. MSFT:
  17. NOK:
  18. DG:
  19. QIHU:
  20. TXT:
  21. GDP:
  22. SLW:

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