Apple to Miss Sales Expectations, Dow takes a Hit

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Hopes for progress in the U.S.

A senior White House economic adviser said he expected trade uncertainty to hit earnings at many US companies, but that sales at Apple and others with large exposure to China would recover once Washington and Beijing strike a trade deal.

USA indexes, which closed broadly lower on Thursday, were set to recover, too.

China's Commerce Ministry announced the trade talks will be held Monday and Tuesday in Beijing as the festering trade dispute continues to cause fears in global financial markets.

Thursday's declines were also a result of concern among investors over the largest one-month decline in US factory activity since the Great Recession.

The statement from one of the world's largest companies will further rattle investors already anxious about the slowing Chinese economy.

Rupal Bhansali, chief investment officer of Ariel International and Ariel Global, and Rajiv Jain, head of GQG Partners, which invests in global and emerging market stocks, are among the veteran investors who have been warning of potential trouble for Apple for months.

China's government said trade talks between the US and China will be held Monday and Tuesday.

Both are not optimistic about emerging markets and see a slowdown. "The strong December jobs report is a net positive for stocks because investors' biggest concern has been slowing growth". Wall Street feared that the Fed might be moving too fast in raising borrowing costs, said Phil Orlando, chief equity market strategist at Federated Investors.

Federal Reserve Chairman Jerome Powell said the central bank will be flexible with interest rates.

Gary Bettman says he hasn’t talked to Stars about Lites’ comments
It's unclear where the game will be played, but the location is the furthest south the Winter Classic has taken place. The 2020 Honda NHL All-Star Weekend will include the 2020 NHL All-Star Skills™ and the 2020 Honda NHL All-Star Game.

The S&P 500 index climbed 63 points, or 2.6 percent, to 2,511 at 10:45 a.m.

Apple's decline dragged down the Dow Jones Industrial Average index on Thursday.

At the time of writing, the Dow had fallen over 500 points.

Shares of the iPhone maker cratered almost 8 percent in extended trading Wednesday - knocking some $50 billion off the market cap after the company took the unusual step of cutting its revenue guidance. Technology companies took their biggest losses in seven years. And here we had thought it was competition from China-based technology firms. Last month, President Donald Trump and Chinese leader Xi Jinping agreed to 90-day ceasefire as a step toward defusing tensions.

Smaller and more USA -focused companies did even better than larger multinationals.

Nonfarm payrolls jumped by 312,000 jobs last month, the largest gain since February.

Bond prices also changed course and moved sharply lower. The Nasdaq rose 2.3 percent, to 6,614. LVMH and Hermes shares also fell.

In Asia, Hong Kong's Hang Seng jumped 2.2 per cent.

Business Insider reports that the NY law firm Bernstein Liebhard has begun to attempt to gather support from Apple investors for a class-action lawsuit against the tech giant over their failure to warn investors about the lack of iPhone demand.

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