Apple's plunge hits Nasdaq

Written By Unknown on Kamis, 24 Januari 2013 | 23.44

APPLE'S plunge on disappointing earnings has pulled the Nasdaq lower in opening trade, but the other key indices managed to stay in positive territory.

Five minutes into trade on Thursday, the Dow Jones Industrial Average was up 34.79 points, or 0.25 per cent, to 13,814.12.

The broad-based S&P 500 up 0.56 point, or 0.04 per cent, to 1,495.37.

But the tech-heavy Nasdaq Composite fell 22.12 points, or 0.70 per cent, to 3,131.55.

The drop in Nasdaq came as Apple, the biggest US company by market capitalisation, disappointed the market with below-expected revenues and a middling outlook on upcoming revenues. Apple shares were off 11.4 per cent.

On the positive side, US jobless claims came in well below expectations, an unexpectedly strong result for the second week in a row.

Chinese manufacturing activity in January was also strong, suggesting the world's second-biggest economy is moving into better times.


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