Stocks Socked Despite Upbeat China Numbers; Apple Falls
NEW YORK (TheStreet) -- Major U.S. stock averages slumped Friday as persistent worries about the ability of the U.S. to avert the so-called fiscal cliff and deep losses in Apple (AAPL) shares overshadowed encouraging Chinese manufacturing and U.S. industrial output data.
Analysts were also playing a part in Apple's decline, with UBS analyst Steven Milunovich cutting his price target to $700 from $780 on lower-than-expected iPhone and iPad shipments in the first calendar quarter.
President Barack Obama and House Speaker John Boehner met Thursday night at the White House to discuss the U.S. budget, their first in-person meeting in four days.
Statements from the White House and Boehner's office both described the talks as "frank," adding that the "lines of communication remain open."
"Enthusiasm for equities continues to be tempered by the lack of progress by the White House and Congress on the fiscal cliff negotiations," said Addison Armstrong, senior director of market research at Tradition Energy.
Michael Lewis, global head of commodities research at Deutsche Bank, said despite the Fed's implementation of QE4, "the market remains focused on the potential adverse liquidity impact of the U.S. fiscal cliff."
"Furthermore, the Fed's targeting of U.S. unemployment as a tool to gauge monetary accommodation could be taken as hawkish given the apparent decline in U.S. unemployment over the past year," added Lewis.
The Dow Jones Industrial Average was fell 36 points, or 0.27%, at 13,135. Friday's dip left the blue-chip index down 0.15% for the week.