Wall Street, weakened by Apple, fall to the opening

Wall Street, affaiblie par Apple, chute à l’ouverture

Photo: Richard Drew Archives The Associated Press

The index featured Dow Jones Industrial Average lost 1,46 % to 23 005,82 points.

Wall Street has started sharply lower on Thursday, weakened by the plunge of Apple in the wake of a lowering of its forecast of results on a background of slowing growth in China.

Around 9: 50 a.m. (time in Québec), the index featured Dow Jones Industrial Average lost 1,46 % to 23 005,82 points.

The Nasdaq, in high coloring technology, was down 1.45% to 6569,53 points.

The expanded index S & P 500 dropped 1.08 per cent to 2483,00 points.

The place in new york had ended Wednesday on the rise thanks to a jump in oil prices, the indices being taken over to the fence after a dip at the opening, already in the wake of new concerns about the chinese economy : the Dow Jones rose 0.08% and the Nasdaq is 0.46 %.

The indicators of a weakening economy in China, a country yet engine of global growth during the years, a growing number of in recent times.

The last date has come from Apple, which announced on Wednesday to revise down its forecasts of results for the 4th quarter of 2018, due in part to the chinese economy less dynamic, as well as the trade war with the United States.

Concerning Apple, “it is the first downward revision of the forecasts in almost two decades,” noted Chris Low of FTN Financial.

This warning on result was tumbling down the manufacturer of the iPhone 8.81 on or after % at the open, losing in the passage some 65 billion dollars of value, and confirmed a little more about the fears of investors in recent months on slowing sales of the brand to the apple.

Following this warning from Apple, the analysts of Goldman Sachs have notably revised down their outlook on its Stock price, saying that the announcement ” confirms our negative point of view on demand in China “.

After having been the first private company in the u.s. to have passed the bar of 1000 billion of market value last summer, Apple has lost a third of its value since and is now worth less than Microsoft, Amazon and Alphabet, the parent company of Google.

The news has also driven the international stock markets, from Asia to Europe, the investors on the assets deemed to be low risk, such as the japanese currency and gold.

In a full trade war between Beijing and Washington, and while no outcome is for the moment on the table, this announcement by Apple is the result of” another bullet in the foot that Donald Trump inflicts on the u.s. economy, ” said Phil Davis, PSW Investments.

“Apple is the largest company in this economy, she feels necessarily the pain” arm of iron between the two countries, he added.

The market was also weakened on Thursday by the 13% drop of the pharmaceutical group Bristol-Myers Squibb after its announcement of redemption of Celgene to $ 74 billion.

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