(Updates to late afternoon)
* Apple drops on report of planned iPhone output cut
* Dow set to post first down week since U.S. election
* Indexes down: Dow 0.28 pct, S&P 0.47 pct, Nasdaq 0.94 pct
By Lewis Krauskopf
Dec 30 U.S. stocks pulled back on the last
trading day of the year on Friday, led down by Apple and other
big tech stocks, but major indexes were still poised to post
solid gains for 2016.
In subdued holiday trading, the S&P 500 was on pace for its
third consecutive session of losses.
But the benchmark index was still on track for an annual
gain of more than 9 percent. The Dow Jones Industrial Average
has climbed more than 13 percent for 2016, but was also on pace
to post its first weekly decline since the U.S. election on Nov.
Stocks have stalled this week after surging in the wake of
Donald Trump's presidential election. Investors have bet Trump
will cut taxes and regulations and introduce fresh economic
"It's been such a significant run-up that there's been a
pause," said Bucky Hellwig, senior vice president at BB&T Wealth
Management in Birmingham, Alabama. "We are to the point now
where there's uncertainty with regard to what policies are
implemented, when are they implemented and how are they going to
affect the economy as a whole and industries specifically."
The Dow Jones Industrial Average fell 55.22 points,
or 0.28 percent, to 19,764.56, the S&P 500 lost 10.5
points, or 0.47 percent, to 2,238.76 and the Nasdaq Composite
dropped 51.17 points, or 0.94 percent, to 5,380.92.
The Dow slipped further from the 20,000 milestone, after
coming within 13 points of the mark but not yet breaching it.
Apple shares fell 0.9 percent after a report that
the company will trim iPhone production. The stock was one of
the biggest drags on major indexes, while shares of Apple
suppliers such as Cirrus Logic and Qualcomm
also were lower.
Tech was the worst-performing major S&P sector, falling 1
percent. Big tech companies such as Microsoft and
Alphabet slumped more than 1 percent.
Investors are wary that the market could be primed for a
spill to start 2017, after the S&P 500 posted a surprisingly
strong gain in 2016.
In other corporate news, OPKO Health shares fell
19.9 percent after the company said its experimental drug for
growth hormone deficiency in adults failed to provide a
statistically significant benefit in a late-stage study.
Declining issues outnumbered advancing ones on the NYSE by a
1.21-to-1 ratio; on Nasdaq, a 1.80-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and no new lows; the
Nasdaq Composite recorded 40 new highs and 43 new lows.
(Additional reporting by Yashaswini Swamynathan in Bengaluru;
Editing by Nick Zieminski)