Apple Plunges, but the Dow Holds On
During earnings season, individual companies have their chance to make waves in the overall stock market. But Apple always has that power, and with reports saying the iPhone giant has cut orders for the components it needs to make its smartphones, Apple shares sank almost 3%, once again briefly dropping below the $500 per-share level. So far, though, the Dow Jones Industrials have managed to avoid most of the fallout from Apple's losses: The Dow is down just three points as of 10:55 a.m. EST.
Among Dow stocks, Bank of America has seen the biggest drop, falling nearly 1.7%. The bank will be on display on Thursday when it announces its fourth-quarter earnings, with many now expecting B of A to post a loss due to charges related to its recent settlements over mortgage-loan practices. In the long run, though, B of A needs to keep moving forward with its New BAC initiative if it wants to justify the huge share-price gains it has enjoyed over the past year.
Beyond the Dow, Cirrus Logic has dropped more than 6.5%. The company is just one of many iPhone suppliers that stand to lose out if demand for Apple products falls. Yet, as Fool technology analyst Eric Bleeker noted last week, Cirrus already trades at a cheap valuation that incorporates those fears, and its strong relationship with Apple should serve it well over the long run, barring a complete collapse for the iPhone maker.
Finally, Research In Motion rose more than 10% in early trade. As Fool contributor Anders Bylund observed earlier today, a combination of positive buzz from momentum investors, better fundamentals in the industry, and RIM's Blackberry 10 launch could give the long-struggling company new life.
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The article Apple Plunges, but the Dow Holds On originally appeared on Fool.com.Dan Caplinger owns shares of Apple. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple, Bank of America, and Cirrus Logic. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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