NEW YORK, Nov 12 — US stocks fell for a third day today, as a slump in Apple Inc shares following weak forecasts from two of its suppliers hit the technology sector.

The iPhone maker fell 3.8 per cent after laser sensor maker Lumentum Holdings Inc slashed its forecast, saying a large unnamed customer had materially cut orders, while screen maker Japan Display Inc lowered its full-year outlook on weaker demand from smartphone makers.

Lumentum plunged 30.9 per cent and shares of other iPhone suppliers including chipmaker Cirrus Logic Inc, Qorvo Inc and Skyworks Solutions Inc fell between 3 per cent and 10 per cent.

The S&P 500 Information Technology index fell 2.0 per cent, while the Philadelphia SE Semiconductor index dropped 3.3 per cent.

US stock futures earlier held steady as Brent crude prices rose 0.9 per cent after Saudi Arabia, the world’s largest oil exporter, said it would cut its shipments in December.

The S&P 500 Energy index rose as much as 0.3 per cent before turning lower.

"Oil seems to be causing some jitters right now because they have been volatile,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

"It should help energy stocks yes, but whether or not it helps the overall market, that correlation is not clear a whole lot of times.”

Investors are also headed into a week that is heavy on retail earnings from companies including Walmart Inc.

Reports from a host of major US companies have shown the impact of tariffs and a slowdown in China on corporate profits. Earnings from major retailers are expected to show how rising wages are eating into margins.

Wage pressures could increasingly be an issue as earnings-per-share growth for S&P 500 companies is expected to slow to about 9 per cent next year following 2018’s tax cut-fuelled earnings gains of about 24 per cent, according to IBES data from Refinitiv.

At 10am ET the Dow Jones Industrial Average was down 204.55 points, or 0.79 per cent, at 25,784.75, the S&P 500 was down 24.47 points, or 0.88 per cent, at 2,756.54 and the Nasdaq Composite was down 115.71 points, or 1.56 per cent, at 7,291.19.

Nine of the 11 major S&P sectors were lower, with slight gains seen in the defensive real estate and utilities sectors.

Tobacco companies Altria Group Inc fell 3.2 per cent and Philip Morris International Inc dropped about 1.9 per cent after the Wall Street Journal reported that the US health regulator is planning to pursue a ban on menthol cigarettes.

Athenahealth Inc rose 9.5 per cent after private equity firm Veritas Capital and hedge fund Elliott Management agreed to acquire the healthcare software maker for US$5.5 billion in cash.

Apptio Inc soared 51.6 per cent after the software company agreed to be bought by private equity firm Vista Equity Partners for US$1.94 billion.

Declining issues outnumbered advancers for a 1.80-to-1 ratio on the NYSE and a 2.51-to-1 ratio on the Nasdaq.

The S&P index recorded 23 new 52-week highs and eight new lows, while the Nasdaq recorded 10 new highs and 60 new lows. — Reuters