US stocks closed mostly higher on Wednesday after some upbeat data on the huge services sector, but market chatter about Apple’s prospects sent it tumbling 6.4 per cent, weighing on the tech-rich Nasdaq.
Financials moved higher as Citigroup surged 6.3 per cent to $36.46, on its announcement of plans to cut four per cent of its workforce to slash costs.
The Dow Jones Industrial Average closed the day up 82.71 points (0.64 per cent) to finish at 13,034.49.
The S&P 500-stock index rose 2.23 points (0.16 per cent) to 1,409.28 while the Nasdaq Composite dropped 22.99 (0.77 per cent) to 2,973.70.
“Blue chips took their cue from some mostly positive economic news from around the globe today, but technology stocks pressured the Nasdaq,” Charles Schwab & Co. analysts said.
Apple shares fell $37.05 to $538.79. The decline in the stock, which peaked above $700 in September, came as IDC forecast Apple’s worldwide tablet share to slip to 53.8 per cent this year from 56.3 per cent in 2011.
Internet radio Pandora Media plummeted 17.5 per cent after reporting third-quarter earnings and revenue above forecasts but offering disappointing guidance for the current quarter.
US economic data was generally positive. The Institute for Supply Management’s monthly index on activity in the services sector rose to 54.7, from 54.2 in October.
Bank of America jumped 5.7 per cent, JPMorgan Chase added 1.6 per cent and Morgan Stanley was up 2.2 per cent.
Travellers gained 4.9 per cent after saying it will resume share buybacks that had been suspended to estimate damage from superstorm Sandy. The insurer put its net losses from the storm at a preliminary $650 million.
Mining giant Freeport-McMoRan plunged 16 per cent after announcing it will buy Plains Exploration for $6.9 billion and McMoRan Exploration for $2.1 billion.
Plains leaped 23.4 per cent and McMoRan Exploration skyrocketed 87 per cent.
Bond prices were mixed. The 10-year US Treasury yield dipped to 1.59 per cent from 1.61 per cent late Monday, while the 30-year held steady at 2.78 per cent.
Bond prices and yields move inversely.
