Closing Bell: Apple Fails to Impress Investors on a Lackluster Day

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Tim Cook, chief executive officer of Apple Inc., speaks during the keynote of the World Wide Developers Conference (WWDC) in San Francisco, California U.S. on June 10, 2013. Apple Inc. is preparing to unveil sweeping changes to the software powering iPhones and iPads, seeking to reignite desire for its products and blunt the advance of Google Inc.'s Android mobile operating system. Photographer: David Paul Morris/Bloomberg
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Apple fails to impress investors at its annual Developers Conference, capping a lackluster day on Wall Street.

Stocks on Wall Street hovered around the break-even line for much of the trading session, and finished mixed.

The Dow Industrials (^DJI) dropped 9 points, and the S&P 500 (^GSPC) was just slightly lower. But the Nasdaq (^IXIC) added 4 points.

Many eyes on Wall Street were turned toward California, where Apple (AAPL) held its Worldwide Developers Conference. CEO Tim Cook announced a new operating system for Mac computers, codenamed Mavericks, along with an update to Apple's iOS, which runs on iPhones and iPads. But the big news out of the conference may be iTunes Radio, a streaming music service built into the new operating system. Investors seem disappointed by the announcements, sending Apple shares down a little more than half a percent. One of the big competitors for iTunes Radio, Pandora Media (P), jumped more than 2 percent.

A few other tech stocks also made headlines today. Facebook (FB) jumped 4.5 percent, wiping out last week's losses, following several upbeat analyst notes. Stifel placed a buy rating on the stock, saying it presents "one of the most compelling investments in the Internet sector right now."

Meanwhile, Google (GOOG) gained more than 1 percent on reports that it will buy Waze, an Israeli mapping and navigation startup. The price tag is said to be over $1 billion.

But Microsoft (MSFT) lost some ground after releasing details about its new Xbox One gaming console.

Outside the tech sector, one of the biggest winners was McDonald's (MCD), up more than 1 percent. It reported strong sales at locations open for more than a year, thanks to some new menu items.

On the other side of the spectrum, homebuilders were among the worst performers on the day. Lennar (LEN) slipped nearly 3.5 percent after a downgrade from J.P. Morgan (JPM). D.R. Horton (DHI) and PulteGroup (PHM) also posted steep declines.

And finally, defense contractor Booz Allen Hamilton (BAH) fell more than 2.5 percent. That after one of its employees, Edward Snowden, revealed that he leaked confidential information about the NSA's PRISM surveillance program last week.19227|22334|28531|

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23 Comments

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buffetexposed

APPLE is done.....Cramer and his pump and dump operation pumped it to $700 and you greedy losers held it instead of taking your profit now your down $300 per share. Jobs is gone and the new yahoo is joke waiting to be retired. Your jobs era phone is now worth more than a share of crapple.

June 10 2013 at 11:50 PM Report abuse rate up rate down Reply
SCUL8RSB

Wall Street vultures.

June 10 2013 at 10:56 PM Report abuse rate up rate down Reply
SCUL8RSB

Wall Street needs to go pound salt.

June 10 2013 at 10:55 PM Report abuse rate up rate down Reply
toptyr

Frankly, I'm not worried about Apple at all. Today's WWDC announcements were fantastic and I can't wait for iOS7, iRadio, and Mavericks. And there will be more good news in the fall. I've heard variations on the anti-Apple rhetoric for years starting with fearful Windows/PC fanatics and, more recently, iPad detractors who thought Steve Jobs had run out of gas and was just putting out a big iPod Touch which would fail immediately. Some people get Apple. Some don't. Thus, it has ever been. Enough consumers get it to make the company fabulously successful. And while the stock is down from its highs in September, it's been a fantastic success for those of us who have seen through the anti-Apple rhetoric or the brazen efforts of those trying to justify short positions. But when some of you ask for Tim Cook to be replaced because he is not Steve Jobs, I'm genuinely curious as to who you think would do a better job. Seriously. I want to know. Cook won't be replaced in the near future, but I'll be entertained in the meantime to see how serious you are and how your candidates would actually improve Apple.

June 10 2013 at 10:02 PM Report abuse rate up rate down Reply
1 reply to toptyr's comment
buffetexposed

Cook is taking the free ride on Jobs shirt tail and doesn't have the motivational spark to prompt the innovators to perform and I think the ship is sinking IMO of course.

June 10 2013 at 11:58 PM Report abuse rate up rate down Reply
IN MY OPINION ONLY

P.S. At a fine restaurant, a table of 12, 7 of them were texting with their iphones, what a shame, no one was talking that much to eachother.

June 10 2013 at 9:32 PM Report abuse rate up rate down Reply
IN MY OPINION ONLY

Time to swallow your fish, CEO?

June 10 2013 at 9:31 PM Report abuse rate up rate down Reply
kaywheel

I always find it a marvel when my daughter calls me on her IPHONE and says, "I have to hurry; my battery is running out." I'm horrified on the other end of the line. In this century, no one should make an instrument that vulnerable with such a short battery life. What were they thinking? Or better still, what were they NO THINKING? I'm not a fan after being forced to get an IPHONE while waiting for the Blackberry Q10.

June 10 2013 at 9:03 PM Report abuse rate up rate down Reply
robmaclachlan

i want a 3d doll to come out of the phone and dance for me like a holograph i seen in a pinball machine that would be cool

June 10 2013 at 8:26 PM Report abuse rate up rate down Reply
lkonstant

Timmy boy may need to step down. Four straight quarters of disappointments is usually the death for most CEO's. Not sure if anyone
could do the "job' like Jobs.

June 10 2013 at 8:21 PM Report abuse rate up rate down Reply
jwmgrand

How will this Nation cope with all the smart phone human addictions .... they have made many people addicted to the phones .... and they cant be away from them for even a minute ...... many will end up in therapy or even instutionialized .......

June 10 2013 at 7:39 PM Report abuse -1 rate up rate down Reply