Analysts are perplex regarding the drop in Apple shares, which are down after trading today. The Cupertino-based tech giant posted profits of $10.7 billion, which rounds out to a 38% increase and a profit share of $1.85. They had an extremely profitable third quarter, and sales were posted at $49.6 billion. It has been reported that they beat expectations, which had them only slated to earn about $1.80 per share. Shares of Apple fell slightly and are trading 7% lower at $121.63 per share. Apparently, Apple is a victim of their own success. They have spent so many quarters wowing investors, that when they meet expectations it is viewed as a failure. The entire situation shows the volatility of the market. Apple sold over 47 million iPhones, 4.8 million Macs, 10.9 million iPads. If there was any area where sales were sluggish, then it would be in the iPad market. With so much competition in the sector and Apple’s reluctance to make any noticeable changes to the product, the one golden iPad has lost momentum with sales down by 18%.
The Dow fell 181 points or 1% ending the day at 17,919. The S&P lost 9 point, which is 0.43% or 2,119. The NASDAQ dropped 10.7 points to 0.21% or 5,208. The Dow was down 1 %, and with the cumulative losses of some technology firms like IBM and United Tech (contributing losses of 118 point), it was a bad day for the markets. The S&P may be the light on the horizon with 29 new 52-week high ratings and only 26 new low ones. Compared to the NASDAQ, which was under, with 94 new high ratings and 114 new low ratings.
The drop in the market was the largest fall in blue chip stock in the past two weeks. Strength in the tech sector had helped the market earlier in the year by driving gain on the NASDAQ, Dow, and S&P. This week also has seen falls in some of the larger tech companies. Apple shares fell 7 percent, Microsoft is down 3.5 percent to $45.65, and Yahoo rounded out the losses at 2.2 percent or $38.85. IBM shares were down 5.9 percent landing at $163.07.
Trading volume was down for the entire US market. There were only 6.15 billion shares in action on the market that is below the average set earlier in the month.