Apple Inc. dropped 3% to a 16-month low of $390.59. The stock has slumped 27% this year, underscoring concern among investors about Chief Executive Officer Tim Cook’s plans for future products in an industry crowded with rivals such as Samsung Electronics Co., Google Inc. and Amazon.com Inc.
Morgan Stanley fell 4.6% to $20.49. Bond-trading revenue plunged 42% in the first quarter and stock- trading revenue declined 19%, the company said.
Bank of America Corp. dropped 3.3% to $11.31, extending a 4.7 slump from yesterday, when the lender reported profit that missed analysts’ projections.
Philip Morris International Inc. slipped 2.6% to $91.64. The world’s largest publicly traded tobacco company posted earnings that fell more than analysts estimated as tax increases and economic weakness hurt shipments.
Verizon climbed 3.1% to an almost 12-year high of $51.06. The second-largest U.S. phone company exceeded analysts’ profit estimates after attracting more wireless customers and getting them to sign up for lucrative data contracts.
PepsiCo jumped 2.8% to a record $81.05. The world’s largest snack-food maker posted earnings that beat the average analyst estimate after global snack sales increased.
Union Pacific Corp. advanced 4% to $142.44, an all- time high. The biggest U.S. railroad reported profit that topped analysts’ estimates as higher pricing overpowered a decline in cargoes.
Peabody Energy Corp. rallied 7.4%, the most in the S&P 500, to $20.43. The largest U.S. coal company reported a loss that was narrower than expected as U.S. demand for coal used to make electricity rose.
American Express Co. added 1.4% to $65.01. The biggest U.S. credit-card issuer by customer spending reported profit that exceeded analysts’ estimates as consumers boosted purchases.