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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

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 488170

Reported Deaths: 6602
CountyCasesDeaths
Hennepin1012851589
Ramsey43273808
Dakota36543394
Anoka33430390
Washington22183261
Stearns18786202
St. Louis14866265
Scott13381107
Wright12580116
Olmsted1184890
Sherburne877174
Carver783241
Clay694587
Rice672291
Blue Earth599635
Kandiyohi580674
Crow Wing522782
Chisago501045
Otter Tail485570
Benton449290
Winona420049
Mower410031
Douglas393768
Goodhue388069
Nobles387147
Polk344663
McLeod340550
Beltrami338751
Morrison326247
Itasca314246
Becker313942
Lyon313844
Isanti308256
Steele303011
Carlton300249
Freeborn285824
Pine282616
Nicollet261541
Todd249230
Brown247237
Le Sueur237420
Mille Lacs229047
Cass221024
Waseca210117
Meeker208134
Martin190629
Wabasha18713
Roseau180917
Hubbard160741
Houston158114
Dodge15384
Renville151640
Redwood147127
Fillmore13908
Pennington137716
Chippewa136835
Cottonwood135920
Wadena131320
Faribault124517
Aitkin119233
Watonwan11798
Sibley117610
Rock116114
Kanabec108119
Pipestone101824
Yellow Medicine97717
Murray9538
Jackson94210
Swift87818
Pope8095
Marshall78415
Stevens7468
Lake74218
Clearwater71914
Lac qui Parle68616
Wilkin67711
Koochiching62111
Big Stone5163
Lincoln5122
Grant4918
Norman4788
Unassigned44768
Mahnomen4437
Kittson40921
Red Lake3615
Traverse3105
Lake of the Woods2221
Cook1180

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 336947

Reported Deaths: 5491
CountyCasesDeaths
Polk51993559
Linn19497317
Scott17149212
Black Hawk14956293
Woodbury13828214
Johnson1314875
Dubuque12444195
Dallas1021893
Pottawattamie9877146
Story963545
Warren514076
Clinton502184
Cerro Gordo500683
Webster495588
Sioux479869
Marshall464273
Des Moines427961
Muscatine425693
Buena Vista412637
Wapello4042110
Jasper387267
Plymouth368578
Lee354453
Marion341171
Jones285055
Henry279837
Bremer270255
Carroll266649
Crawford253535
Boone244030
Benton240854
Washington239247
Mahaska215746
Jackson209939
Dickinson204140
Tama202865
Kossuth198655
Delaware186140
Clay184425
Winneshiek183228
Fayette179235
Page177919
Buchanan177829
Wright174231
Hamilton173842
Cedar172723
Hardin169839
Harrison167670
Clayton160154
Butler159231
Mills148420
Floyd148141
Poweshiek148030
Cherokee146236
Lyon145541
Allamakee144148
Madison143018
Iowa140323
Hancock138030
Grundy132230
Winnebago130531
Calhoun129411
Cass129251
Jefferson128634
Appanoose123347
Louisa122444
Mitchell120540
Chickasaw119915
Union119131
Sac118718
Shelby117433
Emmet115440
Humboldt113725
Guthrie109628
Franklin109219
Palo Alto101321
Howard99522
Montgomery96936
Clarke95020
Keokuk92529
Monroe89828
Adair81529
Ida81532
Pocahontas80919
Davis76523
Monona76427
Greene73110
Lucas72121
Osceola68315
Worth6678
Unassigned6590
Taylor64112
Decatur5699
Fremont5599
Van Buren53718
Ringgold50620
Audubon4769
Wayne47121
Adams3184
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