U.S. stocks fell, extending Thursday’s drop, as a slump in Apple Inc. and the federal budget stalemate offset an increase in industrial production and data showing China’s manufacturing may expand at a faster pace.

Apple, the most valuable company, sank 3.8 percent as UBS AG cut its share-price estimate. Best Buy Co. slumped 15 percent after extending founder Richard Schulze’s deadline to make an offer to take the company private.

Smith & Wesson Holding Corp. slumped 4.3 percent as the killing of children at a Connecticut elementary school spurred speculation of tighter gun-control laws.

U.S. Steel Corp. and Alcoa Inc. added more than 1.7 percent to pace gains in commodity companies.

The S&P 500 closed below its 50 and 100 day moving averages with about 5.8 billion shares changing hands on U.S. exchanges, or 6.7 percent below the three-month average.

Asian stocks fell, with the regional benchmark index poised to halt its longest rally since 2004, as suppliers to Apple Inc dropped. Losses were limited as Japanese shares jumped after a party that backs more economic stimulus returned to power.

Hon Hai Precision Industry Co. fell 4.7 percent in Taipei, leading losses among suppliers to Apple Inc.. Nissan Motor Co. (7201), Japan’s second- largest carmaker by revenue, rose 1.8 percent as the yen slid to the lowest level since April 2011 against the dollar. Tokyo Electric Power Co. (9501) surged 33 percent on speculation Japan’s new government will allow the restart of nuclear reactors.

The MSCI Asia Pacific Index slipped 0.2 percent to 127.13 as of 3:17 p.m. in Tokyo after rising as much as 0.3 percent. The measure capped a 12-day rally on Dec. 14, the longest winning streak since January 2004. The MSCI Asia Pacific Excluding Japan Index fell 0.5 percent to 462.66.

European Stock Futures were little changed as concern U.S. politicians unwillingness to  agree on a budget before the holiday was offset by the election in Japan of a party that backs more economic stimulus.

U.S. futures rose, while Asian shares fell.

Futures on the Euro Stoxx 50 Index expiring in December rose less than 0.1 percent to 2,629 at 7:06 a.m. in London. Contracts on the U.K.’s FTSE 100 Index (UKX) fell 0.1 percent. Standard & Poor’s 500 Index futures added 0.2 percent today, while the MSCI Asia Pacific Index lost 0.2 percent. 

David Brockman | Sales and Trading