Stocks Fall as Apple's Tumble Pulls Tech Shares Lower, Oil Prices Climb
New York (Nov 12) Stocks declined on Monday, Nov. 12, as shares of Apple Inc. (AAPL - Get Report) tumbled, sending technology shares sharply lower, and investors continued to reset interest rate expectations from the Federal Reserve.
The U.S. dollar index, which tracks the greenback against a basket of six global currency peers, traded at 97.34, up 0.35%, as both the euro and the pound drifted lower and investors raised bets on faster rate hikes from the Fed, which is essentially the only major central bank pushing a hawkish monetary policy stance.
Global oil prices spiked Monday after Saudi Arabia said it would trim exports by around half a million barrels a day next month in order to address the market's steep October declines while a meeting of OPEC's monitoring committee hinted at extending production cuts into next year.
Brent crude for January delivery, the global benchmark, rose 0.95% to $70.85 a barrel, while West Texas Intermediate crude, the U.S. benchmark, rose 0.76% to $60.65 a barrel.
•Saudi Export Cuts, OPEC Committee Hints on Production Send Oil Sharply Higher
The Dow Jones Industrial Average fell 210 points, or 0.81%, to 25,779, the S&P 500 declined 0.89%, and the tech-heavy Nasdaq slid 1.6%.Apple Inc. (AAPL - Get Report) fell 3.8% on Monday after a key supplier issued a profit warning, increasing investor concern that iPhone demand may be waning heading into the key holiday sales period.
Lumentum Holdings Inc. (LITE - Get Report) , which supplies 3D chips for Apple iPhone's facial recognition system, said its current quarter sales would come in $20 million weaker -- at $335 million -- than originally forecast thanks to a reduction in shipment requests from an unnamed customer. Lumentum also slashed its earnings forecast to a range of $1.15 to $1.34 from a previous estimate of $1.60 to $1.75 a share.
•Apple Extends Slump After iPhone Parts Supplier Lumentum Issues Profit Warning
•Lumentum Sinks After It Cuts Earnings and Revenue Outlook
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Alibaba Group Holding Ltd. (BABA - Get Report) generated a record $30.8 billion in sales on Singles' Day - the 10th anniversary of the sales event.
However, the annual sales growth rate for Singles' Day fell to 27% from 39%, the smallest rate in the event's 10-year history, according to Reuters.
•Alibaba's Singles Day Hits Record $30.8 Billion
American depositary receipts of Alibaba fell 2.1%.
Athenahealth Inc. (ATHN - Get Report) will be acquired by private-equity firms Veritas Capital and Evergreen Coast Capital, a subsidiary of Elliott Management, for $5.7 billion cash, confirming rumors of a potential sale that were reported over the weekend.
The two firms purchased the Massachusetts-based healthcare software company for $135 a share. That's well above Friday's close of $120.35, but lower than the $160 a share that Elliott offered for the company in May. Athenahealth rose 9.5% to $131.79 on Monday.
SAP SE ( SAP - Get Report) reached a deal to buy Qualtrics International Inc., a survey software company, for $8 billion in cash.
Qualtrics last week filed for an initial public offering. Qualtrics said in a regulatory filing that it has more than 9,000 customers including more than 75% of Fortune 100 companies.
SAP fell 5.6%.
TheStreet
