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Apples Unexpected Warning Pressures Wall Street

Tech sector pulled down Wall Street indexes on Tuesday after an unexpected cautioning from bellwether Apple ramping up concerns over the effect of the coronavirus flare-up on worldwide supply chains.

The Dow Jones sank by 0.71 percent, to 29,173, the S&P 500 lost 0.46 percent, to 3,364 and the Nasdaq Composite eased by 0.32 percent, to reach 9,699 at 1620 GMT.

Tech giant Apple announced that it was unlikely to be in line with its March-quarter sales target due a weaker pace of iPhone production and a frail demand in China, dragging its securities down by about 2.5 percent on Tuesday.

qualcomm shares dropPhoto: Reuters

The news also affected the shares of such Apple vendors like Broadcom (-2.05), Qualcomm (-1.21), Qorvo (-1.55) and Skyworks Solutions (-1.03).

Chip producers, which are highly dependent on China for incomes, went down with the Philadelphia SE Semiconductor shares dropping 1.6 percent, while the more extensive S&P innovation segment lost 0.7 percent.

One should mention that while the exact blow to global economy from the pandemic in China still is not yet clear and hopes, that deterioration would be of temporal nature, helped Wall Street’s major indexes to secure record highs a week ago.

Financial experts were also considering the ambiguous Q4 corporate income reports.

Walmart estimates turned to be sluggish due to weak sales during the recent holiday period, but shares are still growing by 0.95 percent at 1616 GMT.

The shares of Conagra Brands tumbled by 7.4 percent, after the company changed downwards its full-year earnings and sales outlook.

Kroger securities jumped by 6.6 percent after Warren Buffett’s Berkshire Hathaway revealed a $549.1 million stake in the supermarket chain.

Source: Reuters


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