Markets were under pressure Tuesday after the coronavirus outbreak in China lead to the biggest sales warning yet.
The Dow and the S&P 500 finished the day lower but the Nasdaq managed to squeeze out a one point gain -enough for a record closing high.
Setting the downbeat tone: Apple.
It warned it is not going to sell as many iPhones as expected this quarter for two reasons: sales are down since millions of Chinese customers were ordered in January to stay in doors to limit the spread of the virus AND production took a hit with workers in Apple's major factory hub ordered to stay home, which means there'll be a shortage of new iPhones to sell around the world.
Shares of Apple were down and so were iPhone component makers.
For Jeff Tomasulo CEO of Vespula Capital and co-founder of Tactical Income, the Apple news underscores a major worry about the coronavirus outbreak.
SOUNDBITE (ENGLISH): JEFF TOMASULO, CEO, VESPULA CAPITAL, SAYING: "The thing that is concerning me is I think we underestimated the effects.
Were we getting the correct information coming out of China?
The amount of deaths that were happening and the among of people effected.
So you're making decisions on really faulty data and were Apple and all these other companies making the same decisions based off of that.
It is something we are definitely going to keep our eyes on for the next couple of weeks and see how it unfolds." Walmart also said Tuesday it expects to see a negative impact in the first quarter and likely in the second quarter due to reduced store hours in China - but there was bigger news from the company's quarterly results.
Online holiday sales were the weakest in two years and in-store quarterly sales missed analysts forecasts due to weak clothing and toy sales.
Walmart is struggling to compete with Amazon.
One analyst, however, remained upbeat, saying: Walmart still has the room to "transition into a omnichannel powerhouse." Investors seem willing to give Walmart the benefit of the doubt.
The stock reversed an early loss to finish the session with a gain.
Cars are becoming smarter, aren’t they? Connectivity on-board allows you to perform several tasks remotely. Thanks to Apple CarPlay and Android Auto, we have so many new things on our in-car display. The idea is to assist drivers and people on board with more information, insight, and of course entertainment. The latest to join the bandwagon is Honda City 5th generation.
Credit: HT Digital Content Duration: 03:14Published
Tech giant Apple has recently launched the channel Apple Music TV which is exclusively for music videos. According to The Verge, Apple Music TV is a free, curated, 24-hour live stream of popular music videos where American users can watch videos in the browse tabs of the Apple Music app and on the Apple TV app. The new channel can be seen as a direct shot at YouTube's dominance of the music video space.
Jackson Square Capital's Andrew Graham identifies the stocks of Apple suppliers that could benefit the most from sales of the newly released 5G iPhone. He also tells Reuters' Fred Katayama which ones to avoid.
The S&P 500 posted a nominal gain on Friday as further clarity regarding the timeline for the development of a coronavirus vaccine and much better-than-expected retail sales data brought buyers back to the market. Fred Katayama reports.
Stock market analysts always worry around the time of a Presidential election. The markets can react unpredictably when a certain candidate gets elected. According to Stifel the S&P 500 will sell off initially if the Senate or Presidency remains Republican after the election. Business Insider reports that a note from Stifel says the S&P may fall following this election outcome. With the Republicans in charge hopes of a large fiscal stimulus will fade.
The S&P 500 ended lower on Thursday after a rise in weekly jobless claims compounded worries about a stalling economic recovery and fading hopes for more fiscal aid before the election. Fred Katayama reports.
On Tuesday, JPMorgan's Grace Peters told CNBC's "Squawk Box Europe" the S&P 500 could hit 3,750 by September 2021. Business Insider reports that would represent a 12% premium over Tuesday's closing price of 3,335.47. On the outlook for US stocks, she said, "We can see around a 10% upside over a 12-month view." Peters said investors should look at areas that have seen "structural growth" like construction, healthcare, and digital-transformation.
Business Insider reports that US stocks are on course to close lower for a third consecutive week. The S&P 500 has lost nearly 9% since early September's record high. That decline was mainly driven by losses in the technology sector. But Goldman Sachs, Wells Fargo and Deutsche Bank are upbeat the US stock market sell-off is mostly over. Goldman Sachs kept its end-of year S&P 500 target to 3,600 by year end.
Getty Images US stocks extended losses into Monday's close as a lack of stimulus progress cut into hopes for a pre-election deal. House Speaker Nancy Pelosi expedited talks on Sunday, setting a 48-hour deadline for the White House and Democrats to ink a deal. She later told Democrats that significant obstacles in reaching a compromise remain. Even if an agreement is reached, the bill is set to die in the Senate as Republicans push a $500 billion measure.
Wall Street's main indexes hit their lowest in nearly seven weeks Monday as concerns about fresh coronavirus-driven lockdowns and the inability of Congress to agree on more fiscal stimulus raised fears about another hit to the domestic economy. Fred Katayama reports.
The consumer will continue to hang on, Crossmark Global Investments' Victoria Fernandez told Reuters business correspondent Conway G. Gittens, and so she's trimming her mega-tech holdings to buy consumer-focused names such as Walmart, Visa and spice company McCormick.
Hi! Welcome to the Insider Advertising daily for September 22. I'm Lauren Johnson, a senior advertising reporter at Business Insider. Subscribe here to get this newsletter in your inbox every weekday. Send me feedback or tips at [email protected] Today's news: Walmart and Instacart chip away at Amazon's ad dominance, Quibi mulls a sale, and Suzy raises $34 million.
U.S. stocks rallied on Tuesday with the Nasdaq snapping a five-day losing streak as investors bet there would be a soon-to-emerge agreement on an economic stimulus package. Netflix posted disappointing quarterly results. Conway G. Gittens has more.
Wall Street's main indexes ended higher Wednesday to snap a three-session losing streak as investors jumped back in to take advantage of the pullback in technology-related stocks, a day after the Nasdaq confirmed correction territory. Fred Katayama reports.
On Wednesday, Tesla shares rallied as much as 10%. The rally added about $32 billion in market value to the company. Other tech stocks like Apple, Amazon were also in the green after the Nasdaq tumbled a record 10% in three trading days. On Tuesday, Elon Musk's Tesla saw its stock price plunge 21%, erasing $82 billion from its market capitalization. Business Insider reports that Tesla completed a $5 billion share sale and a five-for-one stock split last week.
U.S. stocks closed lower for a third straight session Tuesday as tech stocks extended their sell-off to send the Nasdaq into correction territory, while Tesla suffered its biggest daily percentage drop after the stock was passed over for inclusion in the S&P 500. Fred Katayama reports.
As the Nasdaq fell 5% intraday Thursday, Crossmark Global Investments' Victoria Fernandez, who last month advocated trimming positions on big cap tech stocks, says the market may have further to drop. She tells Reuters' Fred Katayama investors should later buy consumer staples, utility, and energy stocks.