Stocks Start Week With Stumble
Apple (AAPL - Get Report) shares fell following reports that the company's iPhone manufacturer in China, Foxconn, suffered a production interruption after thousands of its workers went on strike over labor conditions.
There was also fresh speculation about the company's plans to launch an iPad Mini later this month with questions being asked how the potential for the product to cannibalize iPad sales during the holiday season.
International worries fueled some of Monday's selling though after the World Bank reduced China's growth outlook to 7.7% this year and 8.1% next year, down from the prior estimate of 8.2% in 2012 and 8.6% in 2013, though the bank noted that it still expects a soft landing for the country's economy.
The outlook for East Asia was reduced to 7.2% this year and 7.6% next year, below the prior forecast of 7.6% in 2012 and 8% in 2013, as the regional and global economy continue to be at risk of a number of headwinds relating to the eurozone and U.S. fiscal cliff.The FTSE 100 in London closed down 0.50% and the DAX in Germany declined 1.44% Monday. The Hang Seng in Hong Kong closed lower by 0.89%. The Japanese market was closed for a public holiday. November crude oil futures closed down 55 cents at $89.33 a barrel. December gold futures fell $5.10 to settle at $1,775.70 an ounce. The dollar rose 0.32%, according to the dollar index. The Treasury market was closed because of the Columbus Day holiday. The new earnings season kicks-off after Tuesday's closing bell with Alcoa's (AA) release of its third-quarter results and expectations on Wall Street are low. According to Thomson Reuters, the sell side is expecting earnings for the S&P 500 to decline 2.4% year-over-year. The firm also noted the warning season has gone worse than normal this time around, suggesting more disappointment may lie ahead.
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