Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Apple Inc. (AAPL)’s Einhorn Fight Pulling Down the Dow? – The Coca-Cola Company (KO), Akamai Technologies, Inc. (AKAM)

It’s always tempting to blame a hot headline for moving the broader stock market. But as compelling as news stories about Apple Inc. (NASDAQ:AAPL) are, today’s big drop in the Dow Jones Industrials , which are down 122 points as of 10:55 a.m. EST, is less about Apple Inc. (NASDAQ:AAPL) than about overall economic concerns. Earlier today, Chicago Fed President Charles Evans said he doesn’t expect the unemployment rate to fall below the Fed’s new 6.5% target until mid-2015, throwing cold water on more optimistic economic data that has come out in recent months. With Evans saying he thinks quantitative easing may need to continue into 2014, investors have to wonder whether the Fed’s exit strategy will ever pan out the way everyone hopes.

Apple Inc. (NASDAQ:AAPL)Apple Inc. (NASDAQ:AAPL)’s shares barely budged this morning, but the company is attracting plenty of attention after activist investor David Einhorn filed suit against the iDevice giant, harshly criticizing the company’s capital-allocation practices. Einhorn’s argument is simple and common among investors: He says it makes no sense for Apple Inc. (NASDAQ:AAPL) to hold on to huge amounts of cash on its balance sheet. While Apple Inc. (NASDAQ:AAPL) wants to eliminate the option of issuing preferred stock, Einhorn would rather see the company issue new securities paying higher dividends that will move some of that cash off the balance sheet and, in his view, unlock shareholder value.

Within the Dow, The Coca-Cola Company (NYSE:KO) was a rare winner, climbing more than 1.3% in advance of its earnings release next Tuesday. Analysts expect modest earnings and revenue growth from the beverage giant, even as headwinds like health concerns have called the soft-drink industry’s future into question. The big question is whether emerging-market growth can make up for any sluggishness in the core North American market, and, for today at least, investors seem to think the answer is yes.

Finally, Akamai Technologies, Inc. (NASDAQ:AKAM) plunged 16.5% after the company missed revenue estimates in its fourth-quarter results and gave a weak forecast for revenue and margins in the current quarter as well. Better-than-expected fourth-quarter earnings weren’t enough to bolster the dot-com’s shares, as investors have come to rely on strong growth numbers to justify the stock’s high valuations.

The article Is Apple’s Einhorn Fight Pulling Down the Dow? originally appeared on and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Apple and Coca-Cola. The Motley Fool owns shares of Apple.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!