Apple falls from 5-year high; banks to report

NEW YORK - Apple held down the Standard & Poor's 500, pushing it further below the five-year high it reached last week, after the technology giant's stock sank following a report that demand for the iPhone 5 may be weaker than expected. The Dow Jones industrial average edged higher.

The Dow rose 18.89 points to 13,507.32 Monday, having fallen as much as 29 points at the start of the day. The S&P 500 fell 1.37 point to 1,470.68. The Nasdaq composite index fell 8.13 points to 3,117.50

The S&P 500 closed at a five-year high of 1,472 on Thursday, following a solid start to the fourth-quarter earnings reporting period and amid optimism that the outlook for global growth is brightening.

Apple's stock, which isn't included in the Dow but accounts for 10.3 percent of the Nasdaq index and 3.7 percent of the S&P, slid $18.55 to $501.75 after The Wall Street Journal reported that the company has reduced its orders for iPhone 5 components due to weak demand. Apple slipped below $500 a share for the first time in nearly a year in early trading. The stock has slumped 28 percent since closing at a record $702.10 in September.

Computer maker Dell surged $1.41, or 13 percent, to $12.29 following a report that it's in talks with buyout firms.

Earnings reporting will pick up this week with many big U.S. banks, including JPMorgan Chase, Citigroup and Bank of America, releasing results.

Earnings growth has likely peaked for now because companies have been relying on cost cutting, rather than growth, to boost profitability, says Ron Sloan, a senior portfolio manager at Invesco. Analysts currently forecast that fourth-quarter 2012 earnings for S&P 500 companies will increase 3.3 percent, according to S&P Capital IQ.

President Obama is currently urging Congress to increase the nation's borrowing limit so it can continue paying its bills. The government has hit its $16.4 trillion debt limit and is expected to run out of ways to meet all of its obligations around March 1, perhaps earlier. Republicans wants spending cuts in exchange for raising the debt ceiling.

The yield on the 10-year Treasury note, which moves inversely to its price, was little changed at 1.86 percent.

Among other stocks making big moves:

H.H. Gregg, a home appliances retailer, fell 45 cents, or 5.7 percent, to $7.44 after the company lowered its earnings forecast for fiscal 2013, citing declining demand for flat screen televisions.

Harry Winston Diamond Corp. gained 62 cents to $15.08 after the company agreed to sell its namesake retail jewelry and watch division to Switzerland's Swatch Group in a deal valued at $1 billion.

Sprint Nextel fell 23 cents, 3.9 percent, to $5.69 after JPMorgan cuts its rating on the stock to "neutral" to "overweight." The bank's analysts expect the company to spend big on capital investment this year and say that the outlook for subscriber growth in uncertain.

United Parcel Service gained $1.32, or 1.7 percent, to $79.24 after the company scrapped plans to grow in Europe through the acquisition of Dutch delivery company TNT Express because of opposition from European regulators. The $6.9 billion deal would have been the largest acquisition in UPS's history.