Apple reduces revenue forecast, blames China slowdown

Apple reduces revenue forecast, blames China slowdown

Apple reduces revenue forecast, blames China slowdown

Market jitters even extended briefly to the Brexit-battered pound, which tumbled to a 21-month low close to $1.24 overnight against the USA dollar in a "flash crash" triggered by an exodus from currencies considered riskier - before very quickly recovering the losses to return to around $1.26.

The warning, which came after trading in NY closed on Wednesday, looked likely to rattle already-volatile stock markets when they reopen on Thursday - with stock index futures pointing to Wall Street falls.

Plunging tech shares weighed heavily on the Nasdaq Composite Index, which is now down 2% at 6,534.19.

Traders cheered a private survey released Friday showing that China's services sector expanded in December.

"When the largest and second-largest economies in the world get into a trade dispute, the rest of the world's going to feel the effects".

Apple has slashed its sales forecast, because iPhone sales are falling in China.

Sales to the USA market have held up despite President Donald Trump's punitive tariffs on $250 billion of Chinese goods, rising 12.9 percent in November over a year earlier. The company is now valued at around $680 billion. Makers of phone parts also fell.

Among big industrial companies, Caterpillar gave up 3.9 percent to $121.51, and Deere lost 2.7 percent to $144.05.

Bond prices rose as investors sought safety, sending yields sharply lower.

A senior White House economic adviser said he expected trade uncertainty to hit earnings at many USA companies, but that sales at Apple and others with large exposure to China would recover once Washington and Beijing strike a trade deal.

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And it does not include the $5 billion Trump has demanded, instead allocating $1.3 billion for border security and fencing. The debate over that funding resulted in a partial government shutdown last week.

An advertisement for Huawei Mate 20 series is seen outside an Apple store, as customers queue before the store opens on the day the new iPhone XR goes on sale in Shanghai, China October 26, 2018.

After Apple's first revenue warning in almost 12 years, investors also dumped chipmakers and tech stocks and flocked to perceived safe havens like U.S. Treasuries and the Japanese yen.

"So the bulls are starting to try and back into this market a little bit but with 500-point swings in the Dow Industrial average on a daily basis, it's hard to put a lot of new money to work with a lot of confidence". It was down as much as 677 earlier. The British pound fell to $1.2630 from $1.2690.

Prices for the iPhone have risen significantly in recent years, and particularly so in the fall 2018 iPhone lineup.

Suppliers for Apple took a stock market hit after the tech company warned investors it was lowering its first quarter revenue forecast, Financial Times reported.

Apple gave up 9.2 percent following its announcement late Wednesday, which struck a raw nerve with investors.

Additional major American brands - including Ford Motor Company and Tiffany - have also recently suffered sharp sales drops in China. It was last down 606 points, or 2.6%, at 22,739.44 where it was on track for the lowest settlement since Christmas Eve.

Apple shares slid some 7.6 per cent in after-hours trade on the news.

In other commodities trading, wholesale gasoline rose 1.8 percent to $1.35 a gallon and heating oil climbed 2.4 percent to $1.74 a gallon.

Gold climbed 0.8 percent to $1,294.80 an ounce.

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