The major domestic equity indexes closed out the day on Tuesday, in negative territory. as Apple and shares of its parts suppliers weakened on a report of soft iPhone X demand. The result, of course, was lower share prices across the technology sector.
According to Taiwan’s Economic Daily, citing unidentified sources, Apple will reduce its sales forecast for its flagship phone in the current quarter to 30 million units, from an initial sales plan of 50 million units.
The report, along with some recent brokerage calls on tepid iPhone X demand, resulted in Apple falling 2.5 percent, making for its worst single-day percentage decline since Aug. 10.
Shares of companies that supply parts to Apple, including Broadcom, Skyworks Solutions, Finisar and Lumentum Holdings, all fell. The PHLX semiconductor index ended the trading day down 0.97 percent.
The S&P technology index fell 0.70 percent, the worst performer among the 11 major S&P 500 sectors. The index has come under pressure in recent days and suffered its fifth straight decline as market participants see tech names getting a smaller enhancement from last week’s new tax program. Nonetheless, the tech sector is still up nearly 40 percent for the year.
Most markets around the world, including parts of Europe and Asia, were closed on Tuesday. Trading volumes were light due to the holiday-shortened week.
Losses were mitigated to a degree by energy stocks as oil prices rose more than 2 percent, helped by an explosion on a crude pipeline in Libya and voluntary OPEC-led supply cuts.
Chevron rose 0.8 percent and EOG Resources gained 2.1 percent to lead the S&P energy sector 0.82 percent higher.
Shares of department store operators Kohl’s, JC Penney and Macy’s rose after a report indicated that retail sales during the holiday period rose at their strongest pace since 2011. The S&P retail index advanced 0.63 percent.
Sucampo Pharma rose 5.9 percent after Mallinckrodt said it would acquire the drug manufacturer for $1.2 billion. Mallinckrodt shares rose 0.7 percent.
Approximately 4.03 billion shares changed hands on the major domestic equity exchanges, making it the lowest volume of the year for a full session. Approximately 6.9 billion shares on average have changed hands over the past 20 trading days.