Dow and AAPL down big in early trading (updated)

Summary:The Dow Jones Industrial Average is down 300 points on a report that consumer spending is down. Apple Inc.

Dow and AAPL down big in early trading (updated)
The Dow Jones Industrial Average is down 300 points on a report that consumer spending is down. Apple Inc. (Nasdaq: AAPL) is down US$20 (around 16 percent) as of this writing – its largest drop in over 8 months.

Apple fell $17.97 to $110.27 at 10:10 a.m. New York time in Nasdaq Stock Market trading, its lowest level since May 2007. The stock had lost 35 percent of its value this year before today.

Apple is down partially in sympathy for the rest of the market but also because Morgan Stanley analyst Kathryn Huberty said the company's price cuts will curb profit growth and then cut her estimate on AAPL shares 35 percent, from a previous target of US$178 to to US$115 per share.

Update: RBC Capital Markets also cut its rating on Apple today to "sector perform'' from "outperform'' and lowered price targets from US$200 to US$140. Barclays reinitiated with a lower price target.

Topics: Apple, Banking

About

Jason D. O'Grady developed an affinity for Apple computers after using the original Lisa, and this affinity turned into a bona-fide obsession when he got the original 128 KB Macintosh in 1984. He started writing one of the first Web sites about Apple (O'Grady's PowerPage) in 1995 and is considered to be one of the fathers of blogging.... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.