Stocks Finish Mixed as Apple, Bank Shares Fall
The Dow Jones Industrial Average rose 19 points, or 0.1%, to 13,507 to boost the blue-chip index's winning streak to four sessions.
Hewlett-Packard shares jumped 4.9% after JPMorgan upgraded the stock to "neutral" from "underweight" and raised its price target to $21 from $15.Financial stocks were some of the biggest decliners in the Dow ahead of their earnings later in the week. Bank of America (BAC) shares fell 1.3%, and JPMorgan (JPM) dipped 0.54%. Also falling were IBM (IBM) and Intel (INTC). The S&P 500 shed 1 point to 1,471. The Nasdaq was off 8 points, or 0.3%, to 3,118. Sectors in the broader market traded mixed. The biggest sector decliner was technology, followed by services. Sector advancers included transportation, consumer cyclicals and consumer non-cyclicals. Apple shares plunged 3.6% at final check, after opening down 4% on reports that the tech giant has cut orders for components for the iPhone 5 due to weaker-than-expected demand, people familiar with the situation told The Wall Street Journal. Both Bank of America and UBS said Monday morning that this is "old news" from December and the stock has recovered from its lows. Kevin Pleines, equity market analyst at Birinyi Associates, said that looking at the 20 instances since 2009 when Apple has opened down more than 2%, "there is no clear trend for the trading day. From the close after the gap down (today's close) the stock has had a tendency to trade higher over the next week and month." Major bank releases later this week include JPMorgan and Goldman Sachs (GS) on Wednesday, and Bank of America and Citigroup (C) on Thursday. Morgan Stanley (MS) reports on Friday. JPMorgan Chase's board is expected to dock the 2012 bonuses of CEO Jamie Dimon and another top executive because of the "London Whale" trading debacle, the Journal reported, citing people close to the company.
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