* Apple falls as Credit Suisse reports components order cut
* China faces persisting deflationary pressure in Oct
* Gap falls after Oct comparable sales disappoints
* Indexes down: Dow 0.19 pct, S&P 0.13 pct, Nasdaq 0.48 pct (Adds details, update prices)
By Abhiram Nandakumar
Nov 10 (Reuters) - U.S. stocks were lower on Tuesday, dragged down by Apple, as investors braced for an interest rate hike by the Federal Reserve next month and worried about weakening demand in China.
Apple’s shares fell 2.6 percent to $117.45 after Credit Suisse said the iPhone maker had lowered component orders by as much as 10 percent. The stock was the biggest drag on the three major indexes.
The report on Apple added to fears of a slowdown in global growth, especially in China, a key market for many U.S. companies including Apple, ahead of the crucial holiday shopping season.
Companies will also be hit with higher borrowing costs if the Fed raises interest rates off near-zero levels next month, as is widely expected after Friday’s strong jobs report.
“What we’re seeing is the market actively pricing in the December rate hike, jumping ahead of the hike, discounting it ahead of time,” said Mohanned Aama, managing director at Beam Capital Management in New York.
Data from China on Tuesday showed persisting deflationary pressure in the country and followed disappointing trade data out of the world’s second-largest economy over the weekend.
At 11:03 a.m. ET (1603 GMT), the Dow Jones industrial average was down 33.94 points, or 0.19 percent, at 17,696.54.
The S&P 500 was down 2.73 points, or 0.13 percent, at 2,075.85 and the Nasdaq Composite index was down 24.36 points, or 0.48 percent, at 5,070.94.
Five of the 10 major S&P sectors were lower, with the materials sector’s 0.92 percent fall leading the decliners.
“This market is susceptible to profit taking and a consolidation period after this quite impressive rally off of the lows in late September,” said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.
The three major U.S. indexes are coming off a six-week rally buoyed by better-than-expected earnings reports that helped lift Wall Street’s sentiment.
Apple suppliers Skyworks, Avago, Cirrus Logic and Qorvo were down between 3.0 percent and 7.5 percent.
EMC fell as much as 2.3 percent to $25.26 after Re/code reported that its proposed takeover by Dell could fall apart due to tax issues.
Gap fell 3.1 percent to $26.82 after its comparable sales fell more than expected in October.
Rockwell Automation fell 4.5 percent to $102.94 after its quarterly results missed estimates.
Among the few gainers on Tuesday, D.R. Horton was up 4.9 percent at $30.18 after its quarterly profit jumped 44 percent.
Declining issues outnumbered advancing ones on the NYSE by 1,574 to 1,324. On the Nasdaq, 1,590 issues fell and 950 advanced.
The S&P 500 index showed two new 52-week highs and three new lows, while the Nasdaq recorded 39 new highs and 64 new lows. (Reporting by Abhiram Nandakumar in Bengaluru; Editing by Savio D‘Souza)