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Economy

US Markets Affected by Apple Decline

NEW YORK— U.S. stocks are mostly lower Wednesday afternoon as tech stocks post sharp declines following weak results from Apple and Twitter. Utility and telecommunications companies are rising as bond yields fall.

KEEPING SCORE: The Dow Jones industrial average picked up 13 points, or 0.1 percent, to 18,003 as of 12:15 p.m. The Standard & Poor’s 500 index fell 3 points, or 0.1 percent, to 2,088. The Nasdaq composite index dropped 43 points, or 0.9 percent, to 4,845.

TECH TROUNCED: Apple fell $6.22, or 6 percent, to $98.13 after reporting its first decline in iPhone sales. Apple also reported its first decline in quarterly revenue since 2003 and forecast similar results in the current quarter. Twitter dropped $2.68, or 15.1 percent, to $15.07. The company’s first-quarter revenue fell short of expectations and its guidance disappointed investors.

TAKE HEART: Medical device maker Boston Scientific climbed $2.18, or 11.1 percent, to $21.87 after it swung to a profit in the first quarter, and earnings and sales were better than expected. It also raised its projections for the year.

OUT TO LUNCH: Buffalo Wild Wings tumbled $16.62, or 11.5 percent, to $128 after the chain’s sales fell short of analyst projections. Chipotle Mexican Grill fell $28.27, or 6.3 percent, to $417.65. Chipotle posted its first loss as a public company as sales plunged following an E. coli outbreak and Norovirus scare.

POWER PLAY: Utility and telecommunications companies rose as bond prices rose, bringing their yields lower. That made the stocks more appealing to investors seeking income. NRG Energy added 34 cents, or 2.4 percent, to $14.90 and Edison International picked up 91 cents, or 1.3 percent, to $69.74. Verizon Communications gained 91 cents, or 1.8 percent, to $51.36.

The yield on the 10-year U.S. Treasury note fell to 1.89 percent from 1.93 percent.

OIL PRICES: The price of crude oil wavered after the U.S. government released its latest data on energy stockpiles. The Energy Information Administration said oil and gasoline stockpiles climbed last week.

Benchmark U.S. crude oil rose 34 cents to $44.38 a barrel in New York. Brent crude, the international standard, was up 51 cents to $46.25 a barrel in London.

Early in the day oil prices reached to their highest level in almost six months, but those gains mostly dissipated after the EIA report.

EBAY EXCITEMENT: E-commerce company eBay’s profit and sales were greater than expected, and it gave solid projections for the current quarter. The stock rose 83 cents, or 3.4 percent, to $25.32.

TAKEOFF: Aerospace giant Boeing helped pull the Dow higher. The company reported mixed first-quarter results, with weaker-than-expected earnings but strong sales. The stock rose $2.03, or 1.5 percent, to $135.27.

DREAMING OF A DEAL: DreamWorks Animation rocketed $4.55, or 16.8 percent, to $31.67 on reports the company behind the “Shrek” and “Kung Fu Panda” franchises might be acquired by Comcast. Comcast stock rose 59 cents, or 1 percent, to $36.74.

OFF ROAD: Trucking company C.H. Robinson Worldwide slid $4.55, or 6 percent, to $71.16 after its first-quarter revenue fell far short of expectations.

ANTHEM OFF-KEY: Anthem, the second-largest U.S. health insurance company, reported strong results for the first quarter, but gave back some of its recent gains. It fell $3.14, or 2.1 percent, to $143.93. The stock is up more than 20 percent since early February.

U.S. STEEL FALLS: The steel maker took a loss that was larger than analysts had expected and its revenue missed estimates. Its stock gave up 37 cents, or 2 percent, to $18.12.

YAHOO TURNS TO STARBOARD: Struggling Internet company Yahoo will add four directors backed by activist investment firm Starboard Value to its board. That ends a potential proxy fight between Yahoo and Starboard. The new directors include Starboard CEO Jeffrey Smith. Two current Yahoo directors won’t run for new terms. Yahoo stock lost 37 cents, or 1 percent, to $36.74.

OVERSEAS: The CAC-40 in France was 0.6 percent higher, and the Britain’s FTSE 100 was also up 0.6 percent. Germany’s DAX advanced 0.4 percent. Japan’s benchmark Nikkei 225 closed 0.4 percent lower. Hong Kong’s Hang Seng fell 0.2 percent.

CENTRAL BANKS: The Federal Reserve will wrap up a meeting Wednesday afternoon. It’s not expected to raise interest rates, but investors will be interested in the Fed’s views on the U.S. and global economies and if there’s any indication that borrowing costs may rise in June. The Bank of Japan could announce a new stimulus package on Thursday.

CURRENCIES: The dollar fell to 111.28 yen from 111.41 yen. The euro rose to $1.1322 from $1.1291.

MARLEY JAY, AP Markets Writer

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