* Apple demand worries drag on S&P, Nasdaq
* Dell up after report it is in talks to go private
* Obama urges congressional Republicans to raise debt
* Indexes: Dow up 0.2 pct, S&P off 0.1 pct, Nasdaq off 0.2
By Caroline Valetkevitch
NEW YORK, Jan 14 The S&P 500 and Nasdaq edged
lower on Monday as concerns about demand for Apple products sent
shares of the tech heavyweight lower and investors braced for
But Dell Inc's stock jumped 12.8 percent to $12.28,
offsetting some of the tech-sector weakness, after Bloomberg TV
said the No. 3 personal computer maker is in talks with private
equity firms to go private.
Apple lost 3.1 percent to $505.33 and was the
biggest weight on both the S&P 500 and Nasdaq 100 indexes
after reports that the company has cut orders for LCD screens
and other parts for the iPhone 5 this quarter due to weak
demand. The stock earlier hit a session low of $498.51, the
first dip below $500 since Feb. 16.
"It's clear from (Apple's) reducing their supply orders that
the sales haven't met their expectations, though certainly the
orders they put into place for the iPhone 5 displays were higher
than those that were in place for the prior phone," said Peter
Jankovskis, co-chief investment officer at OakBrook Investments
LLC in Lisle, Illinois.
"Certainly, the rate of growth that they had - the
tremendous surge in their revenue, stock price, all things do
eventually slow and come down, so it's not a big surprise."
Apple suppliers also lost ground, with Cirrus Logic
off 8.7 percent to $28.82 and Qualcomm down 1.4 percent
to $63.98. The S&P tech sector declined 1 percent as the
worst performer of the 10 major S&P sectors.
The Dow Jones industrial average was up 24.95 points,
or 0.19 percent, at 13,513.38. The Standard & Poor's 500 Index
was down 0.81 points, or 0.06 percent, at 1,471.24. The
Nasdaq Composite Index was down 5.62 points, or 0.18
percent, at 3,120.02.
The Dow fared better than the other two indexes as
Hewlett-Packard rose 6.3 percent to $17.18. The stock,
which was up early in the session after JPMorgan upgraded its
rating on the stock and raised its price target to $21 from $15,
added to gains after the Dell report.
The pace of earnings season picks up this week with 38 S&P
500 companies set to report, 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.
President Barack Obama warned Congress at a news conference
on Monday that a refusal to raise the U.S. debt ceiling next
month could mean a government shutdown and trigger economic
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).
Appliance and electronics retailer Hhgregg Inc
slumped 7.1 percent to $7.33 after the electronics and appliance
retailer cut its same-store sales forecast for the full year.