Apple adds to stocks' slump; dollar slips

Tue Jul 21, 2015 6:15pm EDT
 
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By Rodrigo Campos

NEW YORK (Reuters) - Weak earnings dragged stocks lower on Tuesday and Apple's results weighed U.S. futures further, while a slip in the dollar helped oil and gold cap a string of losing sessions.

Stocks on Wall Street fell, with results from bellwethers IBM and United Technologies weighing the most on the S&P 500, while Apple slumped 7 percent late after posting earnings. U.S. equity futures extended losses, pointing to a weaker open on Wednesday.

"For the first time in a while fundamentals seem to be driving the action today in an otherwise very quiet macro backdrop and probably will continue to do so for the next couple of weeks as we work through the heart of earnings season," said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management in Chicago.

Spot gold prices gave up most of the day's gains and were up marginally after hitting a five-year low on Monday. Investors have dumped gold as the dollar rises and Greece looks to seal a bailout deal.

U.S. crude oil futures rose in choppy trading as the August contract expired, while Brent advanced but remained toward the bottom of its $55-$60 a barrel range of the past weeks, near its lowest since early April.

At Wall Street's closing bell, the Dow Jones industrial average .DJI was down 181.12 points, or 1 percent, at 17,919.29, the S&P 500 .SPX lost 9.07 points, or 0.43 percent, to 2,119.21 and the Nasdaq Composite .IXIC dropped 10.74 points, or 0.21 percent, to 5,208.12.

Healthcare led Europe stocks lower after Novartis reported quarterly income below analysts' expectations. The FTSEurofirst 300 index of top European shares .FTEU3 closed down 1.1 percent after rising 9.3 percent in the previous nine sessions.

MSCI's gauge of major global stock markets .MIWD00000PUS slipped 0.2 percent.   Continued...

 
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, July 21, 2015. REUTERS/Lucas Jackson