Apple weakness hits Nasdaq; oil lifts Dow

May 13, 2016 | 08:52

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Another drop in Apple shares left the Nasdaq in the red on Thursday, but higher oil prices helped keep the Dow in positive territory.

Traders work on the floor of the New York Stock Exchange. (Spencer Platt/Getty Images/AFP)

NEW YORK: Another drop in Apple shares left the Nasdaq in the red on Thursday (May 12), but higher oil prices helped keep the Dow in positive territory.

Apple briefly ceded its crown as the world's biggest publicly traded company to Google parent Alphabet during the session, but managed to edge out Alphabet at the end of trade.

But Apple still finished down 2.4 per cent on worries about declining iPhone sales and the lack of a winning new gadget to ignite further growth.

The Dow Jones Industrial Average added 9.38 points (0.05 per cent) to 17,720.50. The broad-based S&P 500 was down 0.35 points (0.02 per cent) 2,064.11, while the tech-rich Nasdaq Composite Index dropped 23.35 points (0.49 per cent) to 4,737.33.

Two of the strongest stocks in the Dow were ExxonMobil and Chevron, which both gained 1.0 per cent as US oil prices rose to a new peak for 2016.

Agricultural giant Monsanto jumped 8.4 per cent after Bloomberg reported that Bayer officials were mulling a bid for the US company. A separate report by StreetInsider.com said German chemical giant BASF might also make a bid.

Department-store chain Kohl's slumped 9.2 per cent as it reported that first-quarter net income dived 86.6 per cent to US$17 million. The results came on the heels of disappointing earnings announcements from Macy's, Gap and other retailers.

Ralph Lauren bucked the negative trend for apparel companies, rising 2.8 per cent after reporting fiscal fourth-quarter net income of 88 cents per share, five cents above analyst expectations.

Restaurant chain Jack in the Box surged 15.2 per cent after reporting that second-quarter net income rose 24.7 per cent to US$26.7 million.

AFP

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