U.S. shares declined in late morning trading after disappointing results from technology giants including Apple. The S&P 500 (INDEXSP:.INX) skidded 0.3 percent to 2,114.16 at 12:05 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) decreased 0.4 percent to 17,843.49, and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) sank 0.7 percent to 5,169.41. Most followed shares also included Microsoft, Yahoo, GoPro, Coca-Cola, Campbell Soup, Tupperware Brands, AT&T, Boeing, and Thoratec.
In technology shares, Apple (NASDAQ:AAPL) tumbled 5.1 percent to $124.07. The world’s largest technology company reported iPhone shipments for the fiscal third quarter and revenue forecast for the current period lagged behind analysts’ projections. Apple expects revenue of $49 billion to $51 billion in its current quarter ending in September, the Cupertino, California-based company said in a statement yesterday. That missed the $51.1 billion expected by analysts polled by Capital IQ. Apple sold 47.5 million iPhones, a 35 percent rise, in the fiscal third quarter that ended in June, the company said. Analysts had anticipated 48.8 million shipments.
Microsoft (NASDAQ:MSFT), the world’s largest software maker, posted its biggest quarterly loss ever on a write-down tied to its Nokia purchase. Net loss was $3.2 billion, or $0.40 loss per diluted share, in the three months ended June 30, compared to net income of $4.61 billion, or 55 cents per share, a year earlier, the Redmond, Washington-based company said in a statement today. The company took a charge of $7.5 billion in the fourth quarter related to the restructuring of its Nokia handset business, which it bought last year. Stripping out the Nokia charge and costs related to job cuts, profit was $0.62 per share. Analysts on average projected profit of $0.58, according to Capital IQ data.
Yahoo (NASDAQ:YHOO) slipped 0.7 percent to $39.46 after forecasting lower-than-expected revenue for the current quarter as it struggles to revive its core online advertising business. Yahoo reported quarterly profit of 16 cents per share, missing estimates by $0.02, with revenue essentially in line. The company's results were hurt by higher user acquisition costs.
In consumer shares, GoPro (NASDAQ:GPRO) rose 1 percent to $61.43 after the action camera maker reported a better-than-expected quarterly profit and forecast current-quarter revenue above market estimates, helped by strong sales in Asia.
Coca-Cola (NYSE:KO) slid 0.3 percent to $41.08 even as the beverage giant said profit jumped 20 percent in its second quarter on higher volume. Results topped expectations. Worldwide case volume was up 2 percent, more than analysts had been expecting.
Campbell Soup (NYSE:CPB) advanced 2.3 percent to $48.53. The food company raised its full-year guidance, saying planned cost savings had kicked in earlier than expected.
Tupperware Brands (NYSE:TUP/Tupperware-Brands/" rel="7241">NYSE:TUP) plunged 10.7 percent to $57.42. The global direct-to-consumer company posted second-quarter earnings today that were higher from last year and beat expectations, though revenue slid some 13 percent as the strong U.S. dollar dented sales. The Orlando, Florida-based company issued muted guidance for the current quarter, expecting adjusted earnings to land in the per-share range of $0.69 and $0.74. Analysts polled by Capital IQ had forecast earnings of $0.83 for the quarter.
AT&T (NYSE:T) slid 1.1 percent to $34.20 while DirecTV (NASDAQ:DTV) inched up 0.4 percent to $92.87 after a Wall Street Journal report that regulators are poised to approve their $49 billion merger deal.
In industrials, Boeing (NYSE:BA) rose 0.3 percent to $145.39. The largest plane maker posted adjusted quarterly profit of $1.62 per share, beating estimates of $1.37, with revenue also above forecasts. Boeing did reduce its full-year EPS guidance by 50 cents on both the high and low end, but that reduction was less than the $0.77 charge announced last week for a redesign of its tanker program.
In health-care shares, Thoratec (NASDAQ:THOR) jumped 10 percent to $63.37 after St. Jude Medical said it plans to buy the heart-device maker for $3.4 billion. Thoratec had been rising in recent sessions on reports that the two were in talks. Separately, St. Jude reported adjusted quarterly profit of $1.03 per share, 3 cents above estimates, with revenue also above forecasts.