US Stocks Drop as Home Depot and McDonald’s Fall

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US Stocks Drop as Home Depot and McDonald’s Fall

On Tuesday, US stocks opened lower, backing away from last week’s highs.

The Dow Jones Industrial Average dropped 0.25 percent to 17, 068.13 and the S&P dropped 0.26 percent to 1,996.39. The Nasdaq fell 0.23 percent to 4,582.08.

The S&P backed away from its record highs on Monday after gains of five weeks that on Friday pushed the benchmark to its 33rd close for the year.

According to Market Watch, Apple’s stock has increased by 3.4% in two weeks preceding its announcements for the new iPhone. Between the announcement and the start of sales for the new phones, Apple rallied 6.2 percent and has gained 2.1% a month after the releases.

Apple has performed better than the S&P 500 by 0.7 percent over six years in relation to the performance from the past iPhone events. Last year, it underperformed by 7 percent, the worst performance yet, according to Cantor Fitzgerald analyst, Brian White.

The Street reports that Home Depot’s stock dropped 0.63 percent to $90.25 after confirming on Monday that the payment systems were hacked in what might be the largest data breach affecting millions of shoppers that used debit and credit cards at more than the retailer’s 2,000 stores in the United States and Canada.

McDonald’s stocks dropped 0.56 percent to $91.98 after announcing a decrease of 3.75 in same-store global sales in August due to the recent food safety scandal in China.

General Mills fell 0.93 percent to 553.01 while Annie’s surged to 45.81% by 36.71 percent. General Mills is planning to purchase Annie’s, the organic food company, in a $820 million deal.

European markets dropped on Tuesday amid geopolitical anxiety after the EU governments halted the new sanctions against Russia in a bid to assess the latest cease fire in Ukraine. The United States Oil Fund (USO) gained 0.17 percent to $34.76.

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To contact the reporter of the story: Jonathan Millet at john@forexminute.com