Investing.com -- U.S. stocks were mixed on Tuesday on a volatile day of trading, as a sell-off in Apple (O:AAPL) driven by weak supply chain orders weighed on all three of the major indices.
The Dow Jones Industrial Average and the S&P 500 Composite index ticked up to erase some of their losses from the previous session, while the NASDAQ Composite index fell slightly to continue its retreat from near-record highs. The Dow gained 27.73 or 0.16% to close at 17,758.21, while the NASDAQ lost 12.06 or 0.24% to end Tuesday's session at 5,083.24.
The S&P 500, meanwhile, added 3.14 or 0.15% to 2,081.72 as seven of 10 sectors closed in the green. Stocks in the Utilities, Consumer Services and Health Care sectors led, each gaining more than 0.5% on the session. Stocks in the Technology, Basic Materials and Telecommunications industries lagged. The S&P 500 ended a four-day losing streak.
Shares in Apple plunged more than 3% to 116.53, after a report from Credit Suisse (VX:CSGN) found that Apple has reduced its component orders by as much as 10%, due primarily to weakening demand for its new iPhone 6S. The Swiss bank also lowered its forward guidance to 80 million units for Apple's quarter, which ends in December and to the low 60 million units for its first quarter of 2016. Apple closed on Tuesday as the worst performer on the Dow.
The top performer was Visa Inc (N:V), which gained 1.33 or 1.70% to close at 79.37. Shares in Visa are up by more than 25% over the last year, including more than 20% over the last six months.
The biggest gainer on the NASDAQ was VimpelCom (O:VIP), which rose 0.21 or 6.25% to 3.57. In spite of the steady gains on Tuesday, shares in the Russian telecom giant are still down more than 35% since last November. The worst performer was Massachusetts-based semiconductor Skyworks Solutions Inc (O:SWKS), which was weighed down by concerns related to Apple. Shares in Skyworks Solution fell 4.52 or 5.32% to close at 80.37.
The top performer on the S&P 500 was homebuilder DR Horton Inc (N:DHI), which surged 2.38 or 8.27% to 31.15 after its new orders jumped up nearly 20% last quarter helping it beat earnings and revenue forecasts. DR Horton (N:DHI) finished just ahead of Mallinckrodt (N:MNK), which rallied after CEO Mark Trudeau defended an attack by short-seller Citron Research. On Monday, Citron described the Dublin-based pharmaceutical as carrying significantly more downside risk than rival Valeant Pharmaceutical by being a "far worse offender" of the drug reimbursement system. In an interview with CNBC, Trudeau dismissed the facts cited by Citron investor Andrew Left regarding Mallinckrodt's pricing for its Acthar drug as "mostly, if not completely wrong." Following the comments, shares in Mallinckrodt jumped 4.59 or 7.91% to 62.60.
The worst performer was Darden Restaurants Inc (N:DRI), which fell 6.69 or 10.90% to 54.67, after the owner of the Olive Garden, Longhorn Steakhouse, The Capital Grille and several other prominent chains, completed its Real Estate Investment Trust spin-off. Analysts at Deutsche Bank (DE:DBKGn) on Tuesday also cut its target on Darden Restaurants (N:DRI) by more than 12% to $70 a share.
Shares in McDonald`s Corporation (N:MCD) were relatively flat after the world's largest fast-food restaurant said it will not pursue a REIT structure. McDonalds also announced Tuesday that it is increasing its dividend to about $30 billion over a three-year period ending in 2016, up by approximately $10 billion from its previous target.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1,754 to 1,339 margin.