Apple, budget talks drag stocks down

advertisement | advertise on newsday

Shares of Apple, the most valuable company in the United States, slumped Friday, helping to drag down the stock market. A lack of progress in federal budget talks also discouraged investors.

Apple's stock dropped 4 percent after the launch of the iPhone 5 in Beijing failed to draw the long lines of customers that showed up for previous versions of the iPhone, according to news reports.

advertisement | advertise on newsday

The Standard & Poor's 500 index fell 0.41 percent to close at 1,413.58, while the tech-heavy Nasdaq composite sank 0.70 percent to 2,971.33. Apple is the biggest stock in both indexes. The Dow, which doesn't include Apple, fell 35.71 points to 13,135.01. All three stock-market measures ended the week with a loss.

President Barack Obama and House Speaker John Boehner met Thursday to discuss a budget deal to avoid the "fiscal cliff," a collection of higher taxes and government spending cuts scheduled to start Jan. 1. There were no signs of progress, and Boehner returned home to Ohio Friday. -- AP

The latest LI business news in your inbox daily. Get the Biz Briefing newsletter!

Comments now uses Facebook for our comment boards. Please read our guidelines and connect your Facebook account to comment.

You also may be interested in: