June factory orders increase 1.8 percent

WASHINGTON – Orders to U.S. factories increased in June, and a key category that reflects business investment plans posted a modest rise. But the gains weren’t robust enough to suggest the sluggish manufacturing sector is mounting a significant turnaround.

Factory orders advanced 1.8 percent in the month, the Commerce Department reported Tuesday. The jump, however, was fueled by a surge in demand for commercial aircraft, a volatile sector that can swing widely from month to month.

Meanwhile, a key category that serves as a proxy for business investment plans edged up 0.7 percent after declines in April and June. For the first half of the year, this category is down 3.5 percent from the same period a year ago and has dragged overall economic growth.

Demand for durable goods, items expected to last at least three years, increased 3.4 percent in June, matching the estimate made last week in a preliminary report. Orders for nondurable goods such as chemicals, paper and clothing, rose 0.4 percent after no increase in May.

Expectations, China deepen Apple slump

SAN FRANCISCO – Apple is slumping as the usually high-flying tech stock struggles with the burden of raised expectations.

The world’s most valuable public company saw its stock price drop for a fifth straight day Tuesday, falling as much as $5.19, or 4.4 percent, to $113.25 as investors fret over China’s economy and whether Apple can keep growing at the pace it’s maintained over the past few quarters.

Apple shares closed Tuesday at $114.64 – down 14 percent since hitting a record $133.60 in February. That puts Apple in a “correction,” which is Wall Street jargon for price declines of 10 percent or more from a peak. The slide has wiped out more than $96 billion in market value.