Can I use wp_query inside a get_categories foreach

Im trying to loop through all the categories and also display the posts for each category as I go. so it would look like this:

animals
cats dogs horses .. etc

fruits
apples oranges mangoes …etc

Im using the code below. I was able to get the categories to list fine, then i added the wp_query loop stuff for the posts and it only displays the first category then nothing else. just white space. if i comment out the wp_query line, it loops and displays all the categories, but they all list the posts from only the first category.

SO im stuck. can i even use the wp_query inside a get_categories? if so is this correst? or do i need to cache or rewind or reset something? thanks

<?php
	$categories = get_categories($args);
	  foreach($categories as $category) { 

			echo '<p class="category-title">'. $category->name . ' ('.$category->count. ')</p><br />';
				//start query of this categories posts
				$query = new WP_Query('cat='.$category->cat_ID);

						if ( $query->have_posts() ) : while ( $query->have_posts() ) : $query->the_post();
						// Your loop code
							echo '<span class="post-names">';
							$query->the_title();
							echo '</span>';

						endwhile;
						else :
						echo wpautop( 'Sorry, no info found' );
						endif;		

		//echo '<p> Description:'. $category->description . '</p>';
		//echo '<p> Post Count: '. $category->count . '</p>';
	  } //foreach
	?>