Apple weighed heavily on all major US stock indexes yesterday as it fell for the fifth straight day, while oil steadied a day after a broad measure of commodity prices hit a 12-year low.
Apple stock, down 3.1 per cent yesterday, is off near 15 per cent from its record high set in late April.
Stocks and the dollar were little changed. US crude rose and copper edged up but the outlook for commodities continued to be clouded by concerns over a slowdown in China, the world’s second-largest economy.
The Thomson Reuters/CoreCommodity CRB index rose 1 per cent after hitting a more than 12-year low on Monday.
Materials stocks helped buoy the S&P 500, which was trading near its average of the past 100 days.
Wall Street was flat despite data showing new orders for factory goods rebounded strongly in June on robust demand for transportation equipment. At 12:16 pm EDT (1615 GMT) the Dow Jones industrial average fell 9.62 points, or 0.05 per cent, to 17,588.58, the S&P 500 gained 0.31 points, or 0.01 per cent, to 2,098.35 and the Nasdaq Composite dropped 2.49 points, or 0.05 per cent, to 5,112.89.
The pan-European FTSEurofirst 300 index was down 0.3 per cent and a broad measure of stocks in major markets globally was flat.
The Shanghai Composite Index climbed 3.7 per cent in its biggest daily gain since July 10.
Fears of disinflation stemming from the rout in oil prices has led investors to pare bets the Federal Reserve will raise US interest rates as early as September.
Friday’s employment data are key. They are now expected to show the US economy created 223,000 new jobs in July, on par with job creation in June, according to economists polled by Reuters.
The unemployment rate is expected to hold steady at 5.3 per cent.
US Treasuries prices slipped as calmer markets reduced safe-haven bids, while uncertainty ahead of Friday’s jobs report limited trading activity.
“The jobs report – this one and the next one – will be looked over very closely,” said Lou Brien, market strategist at DRW Trading in Chicago. Current trading may be “the quiet before the storm,” he said.
Benchmark 10-year Treasury notes were last down 8/32 in price to yield 2.178 per cent, from a yield of 2.152 per cent late Monday. US 30-year bonds were last down 7/32 in price to yield 2.872 per cent, from a yield of 2.861 per cent late Monday.
The dollar was little changed against a basket of currencies while currencies tied to commodities rebounded as oil and materials stabilized.
The dollar hit a 3-1/2 month high against the Swiss franc, with traders citing the unwinding of safe haven bids related to the Greek crisis.
The euro edged up less than 0.1 per cent versus the greenback at $1.0959.
The Canadian and Australian dollars, both linked to raw materials, got lifts after recently hitting multi-year lows.
“It’s been a quiet day with most major currencies against the dollar,” said Brian Dangerfield, currency strategist at RBS Securities in Stamford, Connecticut.
“The focus is on commodities and commodities exporters’ currencies,” he added.
In commodities markets, Brent added 1 per cent to $49.99 a barrel and US crude gained 2 per cent to $46.09a barrel.