Major US stock indexes have declined significantly, as the key indicator of enterprise activity recorded the biggest drop in the last ten years, which caused dissatisfaction with investors who were already frightened by the Apple warning (AAPL) about the decline in profits.
Apple CEO Tim Cook on Thursday published a letter to investors in which he lowered the forecast for technology giant revenues in the first quarter to $ 84 billion from $ 89- $ 93 billion previously expected. The company also reduced gross margin expectations to about 38%, compared to 38% -38.5% previously predicted. Apple blamed a number of factors for lowering forecasts, including the weakness of the Chinese economy and disappointing iPhone revenues. This news has reinforced concerns about a downturn in global growth, as well as the impact of trade tensions between the United States and China on corporate earnings.
Meanwhile, a report published by the Institute for Supply Management (ISM) showed that in December, activity in the US manufacturing sector sharply decreased, and turned out to be lower than economists' forecasts. The manufacturing PMI fell in December to 54.1 points from 59.3 points in November. The index reached a minimum since August 2016 and recorded the largest decline since 2008. Analysts had expected this figure to drop to 57.8 points.
Almost all the components of DOW finished trading in the red (29 out of 30). Apple Inc.’s shares turned out to be an outsider. (AAPL, -9.75%). Only shares of Verizon Communications Inc. rose in price. (VZ, + 0.39%).
Most sectors of the S & P recorded a decline. The technology sector fell the most (-2.8%). The largest growth was shown by the conglomerate sector (+ 0.9%).
At the time of closing:
Dow 22,684.73 -661.51 -2.83%
S & P 500 2,447.85 -62.18 -2.48%
Nasdaq 100 6,463.50 -202.43 -3.04%
U.S. stock-index futures tumbled on Thursday, as a cut in sales outlook by Apple Inc. (AAPL; -8.6%) added to global growth concerns.
Global Stocks:
Index/commodity | Last | Today's Change, points | Today's Change, % |
Nikkei | - | - | - |
Hang Seng | 25,064.36 | -65.99 | -0.26% |
Shanghai | 2,464.36 | -0.9282 | -0.04% |
S&P/ASX | 5,633.40 | +75.60 | +1.36% |
FTSE | 6,727.39 | -6.84 | -0.10% |
CAC | 4,646.23 | -43.16 | -0.92% |
DAX | 10,470.47 | -109.72 | -1.04% |
Crude | $47.26 | +1.55% | |
Gold | $1,290.10 | +0.47% |
(company / ticker / price / change ($/%) / volume)
ALCOA INC. | AA | 26.06 | -0.18(-0.69%) | 3952 |
ALTRIA GROUP INC. | MO | 49 | -0.31(-0.63%) | 3040 |
Amazon.com Inc., NASDAQ | AMZN | 1,529.00 | -10.13(-0.66%) | 112521 |
American Express Co | AXP | 94.14 | -1.15(-1.21%) | 400 |
Apple Inc. | AAPL | 144.31 | -13.61(-8.62%) | 1848993 |
AT&T Inc | T | 29.47 | -0.07(-0.24%) | 45029 |
Boeing Co | BA | 319.57 | -4.24(-1.31%) | 22660 |
Caterpillar Inc | CAT | 124.78 | -1.60(-1.27%) | 10971 |
Chevron Corp | CVX | 111.06 | 0.37(0.33%) | 1045 |
Cisco Systems Inc | CSCO | 42.26 | -0.36(-0.84%) | 19056 |
Citigroup Inc., NYSE | C | 53 | -0.53(-0.99%) | 17850 |
Deere & Company, NYSE | DE | 145.55 | -2.55(-1.72%) | 150 |
Exxon Mobil Corp | XOM | 69.66 | -0.03(-0.04%) | 3286 |
Facebook, Inc. | FB | 134.48 | -1.20(-0.88%) | 91660 |
FedEx Corporation, NYSE | FDX | 161 | -2.19(-1.34%) | 4097 |
Ford Motor Co. | F | 7.86 | -0.04(-0.51%) | 32418 |
Freeport-McMoRan Copper & Gold Inc., NYSE | FCX | 10.29 | -0.07(-0.68%) | 1378 |
General Electric Co | GE | 7.99 | -0.06(-0.75%) | 292891 |
General Motors Company, NYSE | GM | 33.2 | -0.44(-1.31%) | 8302 |
Goldman Sachs | GS | 170.63 | -1.40(-0.81%) | 7641 |
Google Inc. | GOOG | 1,037.74 | -8.11(-0.78%) | 8155 |
Home Depot Inc | HD | 170.2 | -2.21(-1.28%) | 2503 |
HONEYWELL INTERNATIONAL INC. | HON | 131.03 | -0.80(-0.61%) | 2398 |
Intel Corp | INTC | 46.21 | -0.87(-1.85%) | 28561 |
International Business Machines Co... | IBM | 114.2 | -1.01(-0.88%) | 4661 |
Johnson & Johnson | JNJ | 127 | -0.75(-0.59%) | 1053 |
JPMorgan Chase and Co | JPM | 98.05 | -0.46(-0.47%) | 19491 |
McDonald's Corp | MCD | 175.1 | -0.96(-0.55%) | 1737 |
Merck & Co Inc | MRK | 75.28 | -0.31(-0.41%) | 1839 |
Microsoft Corp | MSFT | 99.9 | -1.22(-1.21%) | 159097 |
Nike | NKE | 73.45 | -0.61(-0.82%) | 8557 |
Pfizer Inc | PFE | 43.06 | -0.19(-0.44%) | 5175 |
Procter & Gamble Co | PG | 90.95 | -0.33(-0.36%) | 1141 |
Starbucks Corporation, NASDAQ | SBUX | 63.75 | -0.57(-0.89%) | 23559 |
Tesla Motors, Inc., NASDAQ | TSLA | 306 | -4.12(-1.33%) | 74569 |
The Coca-Cola Co | KO | 46.7 | -0.23(-0.49%) | 2464 |
Twitter, Inc., NYSE | TWTR | 28.55 | -0.26(-0.90%) | 59511 |
UnitedHealth Group Inc | UNH | 242 | -1.49(-0.61%) | 812 |
Verizon Communications Inc | VZ | 55.55 | -0.47(-0.84%) | 1255 |
Visa | V | 131.59 | -1.33(-1.00%) | 12589 |
Wal-Mart Stores Inc | WMT | 92.77 | -0.57(-0.61%) | 2980 |
Walt Disney Co | DIS | 107.99 | -0.98(-0.90%) | 8128 |
Yandex N.V., NASDAQ | YNDX | 27.5 | -0.01(-0.04%) | 8500 |
Apple (AAPL) downgraded to Neutral from Outperform at Macquarie
Apple (AAPL) downgraded to Hold from Buy at Loop Capital
Apple (AAPL) downgraded to Hold from Buy at Jefferies
Apple (AAPL) upgraded to Neutral from Reduce at New Street Research
Honeywell (HON) upgraded to Outperform from Neutral at Credit Suisse
A negative start to trading is expected on the stock markets of Europe. This is mainly due to the sentiment seen today in Asian stocks and US stock futures.
| Index | Change, points | Closed | Change, % |
|---|---|---|---|
| Hang Seng | -715.35 | 25130.35 | -2.77 |
| KOSPI | -31.04 | 2010 | -1.52 |
| ASX 200 | -88.6 | 5557.8 | -1.57 |
| FTSE 100 | 6.1 | 6734.23 | 0.09 |
| DAX | 21.23 | 10580.19 | 0.2 |
| Dow Jones | -120.6 | 23206.86 | -0.52 |
| NASDAQ Composite | -17.68 | 6617.6 | -0.27 |
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