Wall Street Down As Apple Share Value Retreats

Wall Street closed lower on Monday (Tuesday, July 19, 2022 in Manila) after bank stocks erased earlier gains and Apple shares sank on a rumor that the company planned to restrict employment and spending growth next year, Echo Wang reported for Reuters.

Photo Insert: Apple shares reversed course to trade down 2.1% at $147.1 on a report from Bloomberg that the company expects to slow employment and expenditure growth in some divisions next year in response to a possible economic slump.

After beginning the day with substantial gains due to earnings from Bank of America Corp. and Goldman Sachs Group Inc., the S&P financial sector closed with a decline.

Apple shares reversed course to trade down 2.1% at $147.1 on a report from Bloomberg that the company expects to slow employment and expenditure growth in some divisions next year in response to a possible economic slump.

Goldman Sachs gained 2.5% after reporting a smaller-than-anticipated 48% decline in second-quarter profit, aided by its fixed-income trading activity.

Concerns for a greater one-percentage-point rate hike at the end of July diminished after Fed officials indicated last week that the policymakers could adhere to a 75-basis-point increase.

"Concerns for a greater one-percentage-point rate hike at the end of July diminished after Fed officials indicated last week that the policymakers could adhere to a 75-basis-point increase."

The Dow Jones Industrial Average decreased 215.65 points, or 0.69 percent, to 31,072.61; the S&P 500 lost 32.31 points, or 0.84 percent, to 3,830.85; and the Nasdaq Composite slid 92.37 points, or 0.81 percent, to 11,360.05.

Nine of the eleven major sectors of the S&P 500 lost ground, with healthcare and utilities losing the most ground by percentage, while the energy sector gained the most ground.

Next week's earnings from large technology companies will be extensively scrutinized, as their stock prices have been under intense selling pressure for the majority of this year. Alphabet, the parent company of Google, lost 2.5% among tech companies. IBM fell 1.3 percent.

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