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Facebook tumble pulls stocks on Wall Street lower

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A sharp fall by Facebook and weakness in Apple’s shares despite the strong iPhone 5 launch have helped pull US markets lower.

But Google’s push higher to a new record just above $US750 a share limited the damage.

The Nasdaq Composite closed down 19.18 points (0.60 per cent) for the day to 3,160.78.

The S&P 500-stock index closed 3.26 points lower (0.22 per cent) at 1,456.89.

The Dow Jones Industrial Average, which does not include any of the three tech giants, finished down 20.55 points (0.15 per cent) at 13,558.92.

Trade was heavy in tech shares as Facebook lost nearly 11 per cent at one point on a Barron’s report saying the company’s shares were only worth $15, adding that even at that point they were generously valued.

The shares rebounded only slightly to end at $US20.83, for an 8.9 per cent loss.

Apple shares lost 1.3 per cent to $US690.79 after the company announced it had sold five million of its brand-new iPhone 5 over the three-day launch weekend.

Analysts said the Silicon Valley tech giant was facing supply constraints which limited sales of the new smartphone.

“Demand for iPhone 5 has been incredible and we are working hard to get an iPhone 5 into the hands of every customer who wants one as quickly as possible,” said Tim Cook, Apple’s chief executive, in a statement early on Monday.

“While we have sold out of our initial supply, stores continue to receive iPhone 5 shipments regularly and customers can continue to order online and receive an estimated delivery date,” said Cook.

“We appreciate everyone’s patience and are working hard to build enough iPhone 5s for everyone,” he said.

Google shares closed at $US749.38, up 2.1 per cent to cap a steady three-month climb from the $US560 level. A Citigroup note earlier this month nevertheless concluded that the stock price could “rise significantly in the 12 months ahead”.

Pfizer led a handful of gainers on the Dow with a 1.0 per cent gain, while Hewlett-Packard led losers, down 2.2 per cent.

Home builder Lennar fell 1.5 per cent despite strong quarterly results that painted a positive picture of the housing industry.

Bond prices were mixed. The 10-year Treasury yield dropped to 1.72 per cent from 1.76 per cent Friday, while the 30-year held at 3.03 per cent. Bond prices move inversely to yields.