* Apple falls more than 3 pct on demand worries
* Earnings season picks up this week
* Transocean rises as Icahn acquires stake
* Indexes down: S&P 0.3 pct, Dow 0.2 pct, Nasdaq 0.5 pct
By Leah Schnurr
NEW YORK, Jan 14 Wall Street fell on Monday as
shares of Apple were hit by demand concerns, while investors
faced a busy week for earnings in what is expected to be a
Apple slid more than 3 percent after a report that
the tech company has cut orders for LCD screens and other parts
for the iPhone 5 this quarter due to weak demand. The stock was
down 3.5 percent at $502.30. It was the biggest
drag on the S&P 500 and Nasdaq composite indexes.
"They've had great growth, but the growth is going to slow
because we have some formidable competitors we didn't have when
the iPhone first came out," said Alan Lancz, president at Alan
B. Lancz & Associates Inc in Toledo, Ohio
Apple suppliers Cirrus Logic tumbled 4.8 percent to
$30.04 and Qualcomm lost 1.4 percent to $64. The S&P
tech sector gave up 0.9 percent.
Earnings season picks up the pace this week with reports
expected from companies including Goldman Sachs, Bank of
America, Intel and General Electric.
Overall earnings are expected to grow by just 1.9 percent in
this reporting period, according to Thomson Reuters data.
Thirty-eight S&P 500 companies are due to report results this
"Expectations have been lowered from where they were a few
weeks ago. Whether they're low enough is going to be the key
question," said Lancz.
Analysts say the focus will be on what kind of guidance
companies offer now that a deal has been reached on the "fiscal
Investors will be watching a news conference from President
Barack Obama, scheduled for 11:15 a.m. (1615 GMT). Obama is
expected to focus on looming budget and borrowing due dates,
White House officials said.
Separately, Federal Reserve Chairman Ben Bernanke will be
speaking on monetary policy, recovery from the global financial
crisis and long-term challenges facing the American economy at 4
p.m. (2100 GMT).
The Dow Jones industrial average slipped 23.01
points, or 0.17 percent, to 13,465.42. The Standard & Poor's 500
Index fell 4.80 points, or 0.33 percent, to 1,467.25. The
Nasdaq Composite Index gave up 15.57 points, or 0.50
percent, at 3,110.06.
Appliance and electronics retailer Hhgregg Inc cut
its same-store sales forecast for the full year, sending its
shares down 11 percent at $7.02.
Transocean Ltd has disclosed that billionaire
activist investor Carl Icahn has acquired a 1.56 percent stake
in the offshore rig contractor and is looking to increase that
holding. Its shares rose 3.4 percent to $55.92.
The Dow fared better than the other two indexes as
Hewlett-Packard rose 1.6 percent to $16.42 after
JPMorgan raised its price target to $21 from $15.