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US open: Stocks head south as coronavirus bruises Apple

By Iain Gilbert

Date: Tuesday 18 Feb 2020

US open: Stocks head south as coronavirus bruises Apple

(Sharecast News) - US stocks opened lower on Tuesday as traders returned from the President's Day long weekend to a revenue warning from tech giant Apple.
As of 1520 GMT, the Dow Jones Industrial Average was down 0.40% at 29,281.19, while the S&P 500 was 0.20% weaker at 3,373.29 and the Nasdaq Composite started out the session 0.08% softer at 9,723.76.

The Dow opened 116.89 points lower on Tuesday, continuing on from the loss recorded on Friday as stocks turned in a mixed performance ahead of the long weekend.

Apple shares were down 2.28% at the bell after the firm told investors on Monday evening that it no longer expected to meet its quarterly revenue guidance, pointing to weakened production levels and lower demand in China in the wake of the Wuhan coronavirus outbreak.

With market participants continuing to assess the potential economic fallout stemming from the outbreak, China's National Health Commission said on Tuesday that an additional 98 deaths had occurred nationwide, with 1,886 new cases of the coronavirus taking the total to 72,346 confirmed cases.

Oanda's Craig Erlam said: "Companies have varying degrees of exposure to the Chinese market but as we've see over the last few weeks, the disruption has been significant and widespread. Apple is the first but it certainly won't be the last, or the most severely impacted.

"While the reaction in the markets has been negative, the warning was hardly unexpected which may suggest we're just seeing some opportunistic profit-taking. There's a huge buy the dip mentality in these markets, as we've seen this month already. I don't see any reason to think this will be different."

On the macro front, economic activity in the New York state area started 2020 on a more solid footing, according to the results of a closely-followed survey of factory sector conditions.

The Federal Reserve Bank of New York's manufacturing sector index jumped from a reading of 4.8 for January to 12.9 in February, surpassing economists' forecasts for a reading of 5.0.

Minneapolis Fed President Neel Kashkari will deliver remarks at an event in St Paul, Minnesota.

In corporate news, shares in Advance Auto Parts were up 7.13% at the bell after topping fourth-quarter profit expectations, while Medtronic shares slumped 3.56% after the medical technology company posted a fiscal third-quarter profit that beat expectations but revenues that fell shy.

Dow Jones - Risers

Unitedhealth Group Inc. (UNH) $301.86 1.03%
Microsoft Corp. (MSFT) $186.78 0.77%
Walmart Inc. (WMT) $118.50 0.52%
American Express Co. (AXP) $136.27 0.29%
Johnson & Johnson (JNJ) $150.52 0.26%
Home Depot Inc. (HD) $245.60 0.23%
Visa Inc. (V) $210.44 0.07%
Pfizer Inc. (PFE) $36.54 0.07%
Dowdupont Inc. (DWDP) $30.52 0.00%
Merck & Co. Inc. (MRK) $82.65 0.00%

Dow Jones - Fallers

Apple Inc. (AAPL) $317.16 -2.40%
Intel Corp. (INTC) $66.29 -1.46%
United Technologies Corp. (UTX) $151.76 -1.11%
Goldman Sachs Group Inc. (GS) $234.50 -1.09%
Walgreens Boots Alliance, Inc. (WBA) $52.32 -1.00%
Exxon Mobil Corp. (XOM) $60.06 -0.96%
Cisco Systems Inc. (CSCO) $46.56 -0.88%
Nike Inc. (NKE) $102.68 -0.83%
JP Morgan Chase & Co. (JPM) $136.37 -0.79%
Travelers Company Inc. (TRV) $136.79 -0.71%

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