Apple sinks, dragging S&P down

Federal Reserve chairman Ben Bernanke will speak on

Federal Reserve chairman Ben Bernanke will speak on monetary policy late Monday afternoon, Jan. 14, 2013, while on a trip to Michigan. The markets slipped in early trading. (Credit: AP, 2012)

Apple held down the Standard & Poor's 500 index Monday, pushing it further below the five-year high it reached last week, after the technology giant's stock sank following a report that demand for the iPhone 5 may be weaker than expected. The Dow Jones industrial average edged higher.

The Dow rose 18.89 points to 13,507.32, having fallen as much as 29 points at the start of the day. The S&P 500 fell 0.09 percent to 1,470.68. The Nasdaq composite index fell 0.26 percent to 3,117.50.

The S&P 500 had closed at a five-year high of 1,472 on Thursday, following a solid start to the fourth-quarter earnings reporting period and amid optimism that the outlook for global growth is brightening.

Apple's stock, which isn't included in the Dow but accounts for 10.3 percent of the Nasdaq index and 3.7 percent of the S&P, slid $18.55 to $501.75 after The Wall Street Journal reported that the company has reduced its orders for iPhone 5 components due to weak demand. The stock has slumped 28 percent since closing at a record $702.10 in September.

Earnings reporting will pick up this week with many big U.S. banks, including JPMorgan Chase, Citigroup and Bank of America releasing results.

-- AP

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