Published: Mon, January 07, 2019
Finance | By Jaime Brady

Wall Street ekes out gains, Apple cuts revenue forecast after the bell

Wall Street ekes out gains, Apple cuts revenue forecast after the bell

Some analysts questioned the extent to which Apple's travails were reflective of broader macro trends as opposed to being company-specific. The trade uncertainty "appeared to reach consumers", with customer traffic in China declining, he said.

The company did not respond Friday to a request for comment from CNN Business.

"In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad", Cook said in the letter.

Smaller and more US -focused companies did even better than larger multinationals. It's the result of market competition, rather than economic deceleration. The news provided some relief for equities markets, which faced pressure Thursday amid intensifying fears regarding the health of the global economy. Retailers and internet companies rose as well, with Amazon up 4.1 per cent at $1,561 and Google's parent company, Alphabet, rising 4.1 per cent to $1,067. Five companies saw their share prices increase by at least three per cent Friday - Nutrien Ltd., Brookfield Asset Management Inc., Suncor Energy Inc., Manulife Financial and Canadian Natural Resources Ltd.

President Donald Trump said Friday he wasn't concerned about Apple's future and again encouraged CEO Tim Cook to move his supply chain to the United States.

Qualcomm Inc said it had posted security bonds to enforce a court order banning sale of some iPhone models in Germany, meaning Apple would likely have to pull iPhone 7 and 8 models from its 15 stores in the country. That reversal of fortune could reinforce fears of a global economic slowdown.

Don't forget this: Apple makes their product in China.

Apple's warning couldn't have come at a worse time for stock market investors given the wipeout in late 2018, when many global indexes posted their worst performances in a decade amid concerns about the global economy and the prospect of further USA interest rate hikes.

The US tech giant itself was hit by Thursday's sell-off with its stock tanking 9.96 percent.

Democratic Lawmaker Goes After Trump On Her First Day In Office
He said drugs, victims of human trafficking, criminals, and gang members are continuing to cross the border onto USA soil. The president has already suggested his definition of the wall is flexible, referring to slats and other "border things".

Lovren: Liverpool need luck against Man City
"I feel Liverpool will maintain their seven-point lead over City in the title-race by picking up a vital point at the Etihad". So, a City side going for broke against a Liverpool team looking to hit on the break means something has to give.

Klopp: Manchester City defeat an important step for Liverpool
If Wolves have been hard to predict this term then Liverpool have been the complete opposite, at least in the Premier League . But the Liverpool Echo say there is no chance of Klopp forking out for the World Cup victor this month.

Analysts on average expect S&P 500 companies to increase their earnings per share by almost 7 percent this year, down from a forecast of 10 percent growth at the start of October and far below their expectations of 24 percent EPS growth for 2018, according to the most recent estimate from Refinitiv's IBES.

It is rare to hear that iPhone buyers prefer to replace their battery rather than upgrade to a new iPhone, which of course also suggests the converse - that Apple has been benefitting from the throttling of older iPhones and the high cost of replacing their batteries to drive sales. The yield on 10-year U.S. Treasurys, meanwhile, was last up to 2.584% from 2.557% late Thursday.

China's "economy began to slow there for the second half", Cook said during an interview with CNBC on Wednesday afternoon.

Wall Street analysts scrambled to cut their price targets on Apple, with at least 27 lowering their estimates.

Currently, top officials from the United States and China are involved in trade negotiations. The Nasdaq composite jumped 255 points, or 4 percent, to 6,718. Berkshire, which owns more than 250 million shares of Apple, dropped 5%.

"China is paying us tremendous tariffs".

With over 20 factories, multiple research and development centers as well as logistics and parts centers, heavy equipment maker Caterpillar employs over 10,000 people in China, accounting for over 10 percent of its total employment.

This time, shortly after the decline, the Dow Jones regained points and the net fall, as of the time of publication, now stands at 409 points.

In the fiscal year ending September 30, 2018, USA telecommunication player Qualcomm Inc. earned 15.149 billion dollars of revenues from the Chinese market, which stands for as much as two-thirds of its total.

Like this: