Stocks take a beating after iPhone sales slip; Dow falls 660

Stocks take a beating after iPhone sales slip; Dow falls 660

"Build those plants in the United States.'.China is the biggest beneficiary of Apple, more than us, because they build their product mostly in China". "You have to be a little more cautious, and you have to be a little more defensive until we get further clarity and further visibility in the situation and it just seems like that's not going to come anytime soon".

Apple had issued previous guidance suggesting that revenue for its fiscal first-quarter 2019, ended December 29, would come in at between $89 billion and $93 billion. That was down from an earlier estimate of $89 to $93 billion. The S&P 500 technology companies had their worst day since August 2011.

President Trump's latest interchange with reporters included new stock commentary, on news dominating the tech sector this week: He's not anxious about a drop in Apple's (AAPL +3.7%) stock price. China PMI figures Tuesday night showed the Caixin index slipping below 50 for its lowest reading since May 2017 and new orders notching their weakest level since June 2016.

Apple began making older, cheaper iPhones in India in 2017 at a plant near the southern tech hub of Bangalore, starting with the iPhone SE and adding the iPhone 6S in the middle of previous year.

The weakening will also likely slow the Federal Reserve's interest rate hikes, which will weaken the US dollar.

Macquarie Research analysts, however, have a more grim view of Apple's services business. But that was when consumers commonly purchased a phone every two years, a cycle that has elongated and might prompt buyers to want a more "future proof" device, said Glenn Lurie, CEO of Synchronoss Technologies and the former head of AT&T's wireless unit.

Kentucky police mourn doughnut truck fire
It's not clear what caused the accident, but the police department indicated there were no injuries in the accident . The driver of a Krispy Kreme doughnut truck noticed his vehicle was smoking on New Year's Eve, so he called 911.

Apple ended Wednesday's session with a share price of $157.92, which was already a 30% decline from an all-time high of $227.63 on August 27. Nevertheless, the relatively poor earnings performance has depressed Apple's share price by about 8% recently, and may have had a knock-on effect on other tech stocks. There are some indications from China that they're looking at that, but we don't know that yet. But the Shanghai Composite index jumped 1.8 percent and South Korea's Kospi, which has a high number of tech stocks, added 0.4 percent to 2,001.80 after Thursday's lower close.

USA government bond prices surged, sending yields to their lowest level in nearly a year, and gold and high-dividend stocks like utilities also rose as investors looked for safer places to put their money.

"The knee-jerk reaction is that it will influence trading", said David Katz, chief investment officer at Matrix Asset Advisors. Best Buy Co. fell 3.8 per cent while Target Corp. slid 1.2 per cent.

It may be tempting to pick up Apple on this dip, but investors should be patient as the USA economy looks poised for a sharp slowdown in 2019 and 2020.

Apple declined to comment on the group's statement but has previously said it believes its current phones comply with the Chinese court's order.

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