Coronavirus took a bite out of this Apple, and the market as a whole, as shares backed off from ATHs (All Time Highs) on Monday, when not-the-first, and possibly one-of-many, major coronavirus impact profit warnings came across. This one from the consumer tech behemoth Apple.
TOKYO (Reuters) – Asian shares fell and Wall Street retreated from record highs on Tuesday after Apple Inc ( AAPL.O ) said it will not meet its revenue guidance for the March quarter as the coronavirus outbreak slowed production and weakened demand in China. FILE PHOTO: People wearing surgical masks walk past a screen showing Nikkei index outside a brokerage in Tokyo, Japan February 3, 2020. REUTERS/Kim Kyung-Hoon The warning from the most valuable company in the United States sobered investor optimism that economic stimulus by Beijing and other countries would protect the global economy from the effects of the epidemic. S&P500 e-mini futures ESc1 dipped as much as 0.3% in Asian trade. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.65% while Tokyo’s Nikkei .N225 slid 1.0%. Shanghai shares .SSEC dipped 0.2%, having gained in nine of the past 10 sessions largely on hopes for policy support by Beijing. China’s central bank cut the interest rate on its medium-term lending on Monday, which is expected to pave the way for a reduction in the benchmark loan prime rate on Thursday. But sentiment was shaken when Apple told investors its manufacturing facilities in China have begun to re-open but are ramping up more slowly than expected, reinforcing signs of a broader hit to businesses from the epidemic. “Apple is saying its recovery could be delayed, which could mean the impact of the virus may go beyond the current quarter,” said Norihiro Fujito, chief investment strategist at Mitsubishi […]