Apple Keeps Biting the Nasdaq — Tuesday’s IP Market Recap

by Marc Bastow | January 15, 2013 4:55 pm

InvestorPlace Market Recap[1]Continued weakness in Apple (NASDAQ:AAPL[2]) weighed heavily on the markets Tuesday, though better-than-expected news[3] on the retail front was able to keep two of the three major indices in the black for the day.

The Dow Jones Industrial Average edged 0.2% higher to 13,534.89, and the S&P 500 finished up 0.11% to 1,472.34. But the AAPL-laden Nasdaq declined 0.22% to end at 3,110.78.

Apple’s stock dropped below $500 for the second time in as many days, and this time it stayed there — AAPL fell more than 3% to $485.31 on continued worries about slowing demand and margins for the iPhone 5, as well as lowered profit estimates by Nomura. Apple stock had not closed below $500 since February 2012.

Facebook (NASDAQ:FB[4]) made its major announcement: The debut of a social search feature named “Graph Search”[5] that allows users to search their own network of connections for people, places, photos and interests they share with others on the site. FB investors yawned, however, knocking shares down 2%. However, Yelp (NYSE:YELP[6]) investors seemed convinced Graph Search could be trouble, bidding the business listings site down 7%.

Dell (NASDAQ:DELL[7]) extended Monday’s rally with another 7% gain as rumors continue to fly that the company is considering a buyout[8]. DELL is up 21% in the past two days.

Express (NYSE:EXPR[9]) stole the show in the retail sector with a 23% surge after announcing surprisingly good holiday sales and raising its Q4 and full-year earnings forecasts. Other retailers headed higher were Aeropostale (NYSE:ARO[10], +7.6%), American Eagle (NYSE:AEO[11], +4.8%), Gap (NYSE:GPS[12], +3.4%) and Macy’s (NYSE:M[13], +2.2%) on the day’s broader sector news[14].

However, athletic apparel stock Lululemon (NASDAQ:LULU[15]) didn’t share in the good news, dropping nearly 4% on Q4 revenue estimates[16] that were lower than Street expectations.

Notable earnings announcements for Wednesday include Goldman Sachs (NYSE:GS[17]), JPMorgan Chase (NYSE:JPM[18]) and Intel (NASDAQ:INTC[19]).

Three Up

Three Down

Marc Bastow is an Assistant Editor at As of this writing, he was long AAPL and INTC.

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