Low demand for the iPhone X dragged down Apple shares 2.5 percent on Tuesday, also placing pressure on Wall Street’s main indexes.
Apple is reducing its previous sales forecast for its latest smart phone, from 50 million units to 30 million units for the quarter, according to Taiwan’s Economic Daily report. This news, along with bearish calls on iPhone X demand from brokerages, put the tech giant’s shares on course for its worst single-day percentage drop since August. Companies that supply parts to Apple also saw their shares drop such as Broadcom, Skyworks Solutions, Finisar and Lumentum Holdings, all dropped between 2.2 percent and 4.3 percent.
The S&P technology index dropped 0.84 percent, and took the title as the biggest loser amongst the major S&P 500 sectors. The tech heavy Nasdaq dropped 0.4 percent to 6,932.08 as Alphabet, Amazon, Facebook and Netflix, all showed losses.
“It looks to me that technology sector, already paying the lowest in taxes of around 24 percent, will not get as much of an impact as the financial sector, which pays the highest,” said Sandy Villere, a portfolio manager. “Maybe that rotation has begun and the FANGS may see some profit-taking into next year.”
Several global markets, including parts of Europe and Asia, were closed on Tuesday following the Christmas holiday and trading volumes are expected to be light for the remainder of the week.
THE HERALD FINANCE REPORT
Start your workday the right way with the news that matters most.
At 10:49 a.m. ET (, the Dow Jones Industrial Average increased 0.05 percent to 24,765.7, while the S&P 500 dropped 0.05 percent to 2,681.84.
Advancing issues outnumbered decliners on the NYSE by 1,641 to 1,088. On the Nasdaq, 1,404 issues declined and 1,316 advanced.
The energy sector gained 0.73 percent as oil jumped, maintained by a crude pipeline explosion in Libya as well as the continued OPEC-led supply cuts.
Shares of department stores Kohl’s, JC Penney and Macy’s all gained between 4.7 percent and 8 percent following the report that retail sales reached highs not seen since 2011 during this holiday season.