Apple shares fall after China patent issue

US stocks dipped early Friday on reports of a crackdown on Apple by China that offset rising optimism that Britain will vote to stay in the European Union.

Apple shares fell 1.7% following reports that the city of Beijing concluded the technology giant had violated a Chinese company’s design patents and may be forced to halt sales of its latest iPhones in the Chinese capital.

Equity markets in Europe and Japan reversed Thursday’s losses on speculation that British voters will reject an exit of the EU in the June 23 referendum after the murder of pro-EU Labor member of parliament Jo Cox.

About 40 minutes into trade, the Dow Jones Industrial Average was at 17,699.24, down 0.2%.

The broad-based S&P 500 lost 0.3% at 2,072.58, while the tech-rich Nasdaq Composite Index fell 0.6% to 4,814.79.

Coca-Cola and Pepsico both fell about 1.0% after Philadelphia became the first major US city to enact a tax on sugary drinks.

Software giant Oracle climbed 2.6% as fiscal fourth-quarter net income rose 2.0% behind strong growth in some key service offerings in cloud computing.

Cosmetics company Elizabeth Arden surged 47.5% on news it agreed to be acquired by Revlon for about $870 million. Revlon rose 8.5%.