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Apple meltdown; Markets shudder; DC power shift

1. Apple meltdown: A revenue warning from Apple is shaking stock markets.Apple (...

Posted: Jan 3, 2019 10:41 AM
Updated: Jan 3, 2019 10:41 AM

1. Apple meltdown: A revenue warning from Apple is shaking stock markets.

Apple (AAPL) CEO Tim Cook has unnerved investors by warning them to expect lower sales from the holiday quarter, primarily because of weak demand for iPhones in China.

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Dow futures pointed to a much lower open, falling 335 points. S&P 500 futures were 1.5% lower and Nasdaq futures plunged 2.6%. Apple stock was poised to open down nearly 8%, a decline that would wipe $55 billion off its market value.

In a letter to investors on Wednesday, CEO Tim Cook blamed the disappointing outlook on China's ongoing trade war with the United States and a number of other factors, including the company offering cheaper iPhone battery replacements.

The warning from Apple underscores the key role that China plays in global trade, and the impact of weaker growth in the world's second-largest economy. China is a huge market for Apple, making up about 15% of its sales.

China is feeling the effects of a darkening trade outlook and government attempts to rein in risky lending after a rapid rise in debt levels. Growth in 2018 is set to be the weakest since 1990. And 2019 looks even worse.

2. Global impact: The sales warning hit shares in companies that provide components for iPhones and other Apple products.

Shares in Hon Hai Precision (HNHPD), better known as Foxconn, fell 2% in Taipei. Catcher Technology, a Taiwanese company that makes iPhone cases, dropped nearly 4%.

Austria's AMS (AMSSY), which makes light sensors, plunged more than 19%. Shares in European chipmakers Dialog Semiconductors (DLGNF) and STMicroelectronics (STM) dropped 7%.

The losses contributed to a sour mood in global markets.

European markets opened lower on Thursday. France's CAC 40 and Germany's DAX were the biggest losers, shedding around 0.7%. Stocks in Asia closed with small losses.

3. Shutdown continues: Negotiations to end the partial shutdown of US federal agencies, now well into its second week, are set to become even more difficult.

Democrats will grab significant leverage against President Donald Trump when they claim the House of Representatives in a reshuffling of Washington's balance of power on Thursday.

Trump told a group of lawmakers he can't accept Democrats' offer to re-open the government as the two sides negotiate border wall funding because he "would look foolish if I did that," according to a person familiar with the exchange.

The government shutdown probably won't mean much for the economy in the near term, but investors are worried the impasse may be a sign of troubles for the debt ceiling negotiations later this year.

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4. Earnings and economics: Shares in UK fashion retailer Next (NXGPY) were up 4.5% after the company reported holiday sales that were not as bad as some investors expected.

The Institute for Supply Management will release its ISM Manufacturing Index for December at 10:00 a.m. ET.

US oil futures dropped 1.5% to $45.80 per barrel on Thursday, reversing some price gains from the previous session.

5. Coming this week:
Thursday — ISM manufacturing index
Friday — Jobs report for December

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 263023

Reported Deaths: 5752
CountyCasesDeaths
DeSoto17675191
Hinds16813331
Harrison14224204
Rankin11167219
Jackson10839190
Lee9050144
Madison8568168
Jones6668114
Forrest6177124
Lauderdale6097192
Lowndes5518120
Lafayette516298
Lamar503965
Washington4923125
Bolivar4104109
Oktibbeha405982
Panola384881
Pontotoc376258
Warren3674103
Monroe3671108
Union355663
Marshall355270
Neshoba3485154
Pearl River3468105
Leflore3111109
Lincoln305688
Hancock291862
Sunflower291475
Tate279662
Alcorn272354
Pike268981
Itawamba268063
Scott259648
Yazoo255256
Prentiss252553
Tippah249250
Copiah249049
Coahoma248054
Simpson242171
Leake237367
Grenada223272
Marion222073
Covington219973
Adams213671
Wayne212634
Winston207371
George204339
Newton199046
Attala196963
Tishomingo194161
Chickasaw189044
Jasper179538
Holmes171768
Clay165837
Tallahatchie156235
Stone151425
Clarke147262
Calhoun140822
Smith129226
Yalobusha122034
Walthall114337
Greene113529
Noxubee112926
Montgomery111636
Carroll106622
Lawrence106517
Perry104531
Amite101426
Webster96124
Tunica88821
Claiborne88325
Jefferson Davis88329
Benton85623
Humphreys84624
Kemper80520
Quitman7089
Franklin69917
Choctaw63213
Wilkinson59825
Jefferson56821
Sharkey45117
Issaquena1606
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Alabama Coronavirus Cases

Cases: 439442

Reported Deaths: 6657
CountyCasesDeaths
Jefferson644371007
Mobile31435569
Madison28158217
Tuscaloosa21492275
Montgomery19873332
Shelby19248132
Baldwin17128189
Lee13137107
Morgan12594142
Etowah12070181
Calhoun11496206
Marshall10420123
Houston8988164
Limestone832081
Cullman8257124
Elmore8183110
DeKalb7871107
Lauderdale7847107
St. Clair7808130
Talladega6445112
Walker6028183
Jackson599145
Colbert548694
Blount546286
Autauga535862
Coffee460764
Dale409685
Franklin374150
Russell354215
Chilton344373
Covington338580
Escambia334544
Tallapoosa3143109
Dallas312996
Chambers303470
Clarke298036
Pike262431
Lawrence253355
Marion253161
Winston233342
Bibb222348
Geneva210247
Marengo208231
Pickens199531
Hale184944
Barbour180538
Fayette177829
Butler173160
Cherokee165131
Henry159525
Monroe152021
Randolph145536
Washington141727
Clay129746
Crenshaw123745
Macon121937
Cleburne121525
Lamar119922
Lowndes114836
Wilcox107922
Bullock103328
Perry99918
Conecuh97822
Sumter90527
Greene77923
Coosa63418
Choctaw51924
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