Who's more powerful: Apple (AAPL +0.24%) or Ben Bernanke? Today the markets answered with a resounding "Apple," as the benchmark S&P 500 Index (^GSPC +0.55%) fell along with Apple, despite some encouraging comments from Bernanke earlier in the day. The Federal Reserve chairman hinted in a speech early Monday that he thought the central bank's bond-buying strategy would continue through the near future. The S&P 500 stubbornly responded by losing 1.4 points, or about 0.1%, to close at 1,470.
Three S&P 500 stocks in particular were distinctly unpopular today. First, shares in telecom giant Sprint Nextel (S +0.00%) got hammered, losing 3.9% after investment bank UBS cut its rating on the stock. Emphasizing the new "neutral" outlook (the stock had formerly carried a "buy" rating), analysts said they expect lower fourth-quarter profitability this year from Sprint.
Uncharacteristically, Apple was the second major laggard in the index Monday. Shares fell 3.6% after reports emerged that the company ordered far fewer iPhone 5 component parts than expected for the quarter. A Bloomberg article alleges that about half of the 65 million iPhone 5 displays Apple was expected to order were placed. Fearing this could signal a disturbing drop in demand, Apple shares closed just above $500 apiece, the lowest level in 11 months.
First Solar (FSLR 1.67%), which started building its Campo Verde Solar project Jan. 10 in Imperial County, Calif., also recently bought a company called Solar Chile, signaling the company's move into subsidy-free markets. These large financial commitments may have spooked First Solar investors. The company has lost money in the trailing 12 months, and today's 2.5% decline could be a sign that meaningful profits will also be hard to come by moving forward. {%sfr%)
