By Sue Chang and Saumya Vaishampayan, MarketWatch
SAN FRANCISCO (MarketWatch) -- Apple Inc. extended losses to be the worst performer in the S&P 500 and the Nasdaq on Monday in the wake of a report that a major Chinese carrier is offering a smaller subsidy for the new iPhones than in the past.
Apple (AAPL) fell almost 2%, falling for a second session. China Telecom Corp. (CHA), one of the Chinese telecom companies offering the iPhone in the Asian country, is apparently making customers pay more upfront for the iPhone 5S compared with the iPhone 5, The Wall Street Journal reported.
Meanwhile, in the U.S., the delivery time for iPhone 5C is still Sept. 20, while for iPhone 5 last year, delivery was pushed back by two weeks in the first three hours after it became available for pre-orders, said Brian White, an analyst at Cantor Fitzgerald. "However, we believe the iPhone 5 had significant supply constraints at the launch date last year due to the new aluminum unibody enclosure that was difficult for suppliers to manufacture at first, while our research has not uncovered any supply constraints around the iPhone 5C this year," White said in a note.
The stock hit a golden cross last week, formed when a short-term indicator moves above a longer-term indicator, which suggests the stock could move into bull-market territory soon.
J.C. Penney Co. (JCP) shares shed 1%. Vornado Realty Trust said Friday it plans to unload its stake in the embattled retailer in the "not-too-distant future." Steven Roth, chairman and chief executive officer of Vornado, also resigned from J.C. Penney's board.
Boise Inc. (BZ) shares surged 27%. Packaging Corp. of America (PKG) on Monday agreed to acquire Boise for $12.55 a share in cash in a deal worth $1.995 billion, including debt. Shares of Packing Corp. of America leapt 8.3%.
Allegheny Technologies Inc. (ATI) shares surged more than 9%. The company said Monday that it will sell its tungsten materials business to Kennametal Inc. (KMT) for $605 million. The transaction is expected to close in the fourth quarter. Allegheny's tungsten business generated revenue of $338.6 million and an operating profit of $37.2 million for the year ended Dec. 31, 2012. Shares of Kennametal were up 4.1%.
$SOHU: U.S.-listed shares of Sohu.com Inc. (SOHU) gained 4.7%. Tencent Holdings Ltd. on Monday agreed to invest $448 million in an independent subsidiary of Sohu, Sogou Inc., which focuses on search and Internet services.
U.S.-listed shares of Qihoo 360 Technology Co. (QIHU) fell 4%. Qihoo had been in talks to purchase Sohu's search subsidiary Sogou, according to Dow Jones Newswires.
-Sue Chang; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
09-16-13 1036ETCopyright (c) 2013 Dow Jones & Company, Inc.
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