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Apple’s plunge hits Nasdaq, but Dow higher

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Apple’s shares have plunged more than 12 per cent after its earnings disappointment, but the Dow held up in positive territory with help from airline stocks.

Netflix meanwhile soared 42.2 per cent in heavy trade on Thursday after showing strong growth in subscribers, driving income to $US945 million ($A907.82 million) in the fourth quarter.

The Dow Jones Industrial Average gained 46.00 points (0.33 per cent)at 13,825.33.

The broad-based S&P 500 ended flat, adding just 0.01 (0.00 per cent) at 1,494.82.

The tech-heavy Nasdaq Composite fell 23.29 (0.74 per cent) to 3,130.38.

The mixed finish followed disappointing revenues and guidance from Apple after the markets closed on Wednesday.

Shareholders of Apple, the biggest US company by market capitalisation, punished the stock. Apple shares dropped 12.4 per cent to $US450.50.

The Apple cloud muted the impact of numerous upbeat global economic reports including stronger-than-anticipated reads on Chinese manufacturing output and eurozone business activity, Charles Schwab & Co said in a research note.

The positive news continued in the United States, where weekly US jobless claims fell for a second straight week.

Outside technology, “nearly all other sectors gained ground thanks to better-than-expected profit tallies and encouraging economic data”, Well Fargo Advisors analysts said.

Dow member 3M reported in-line profits; shares were up 0.2 per cent.

Cisco Systems was the strongest Dow gainer, up 1.9 per cent.

Defence contractor Lockheed Martin’s shares slid 2.9 per cent after it reported earnings that fell short of analyst expectations.

Lockheed projected that 2013 profits would come in above the 2012 levels, but it also acknowledged it faces the “uncertainty” of possible defence cuts in Washington.

US airline United Continental rose 2.2 per cent after reporting revenues that bested expectations despite an overall loss for 2012.

Biotechnology giant Amgen offered an improved 2013 outlook but shares fell 0.5 per cent following lower 2012 profits.

Bond prices fell. The yield on the 10-year US Treasury rose to 1.84 per cent from 1.83 per cent late on Wednesday, while the 30-year yield increased to 3.04 per cent from 3.03 per cent. Bond prices and yields move inversely.