The New York Stock Exchange mostly headed downward amid the announcement of Apple’s Corona 19 (COVID-19) shock.
However, Apple’s stock price recovered somewhat from the fall in the day. And the key index recovered from the low point of the day as Netflix gained 2 percent.
The Dow Jones index closed at 29,232.19, down 165.89 points, or 0.56 percent, from the previous day.
The index of the S&P500 and the index closed at 3370.29, down 9.87 points, or 0.29 percent, from the previous day. The Nasdaq index, on the other hand, rebounded and closed at 9732.74. Down 1.57 points, or 0.02 percent, from the previous day.
COVID-19 shock, Apple stock rebounded
In a press release posted on its website, Apple said, “The resumption of production by its manufacturing partners in China is slower than expected. And demand for Apple in China is likely to reduce due to theCOVID-19,” adding, “It will be difficult to achieve this quarterly sales forecast.”
“The news of Apple is disappointing but not surprising, and I still think it’s a temporary issue,” said Chris Caso, an analyst at Raymond James. When Apple’s manufacturing partners fully resume production and its retail facilities in China are normal, most of the production and demand will be back on track, he said.
UBS said that Apple’s warning of sales signals a negative impact on the IT and regional markets. But rather reflects the concerns that Apple already knew
Apple did not disclose the revised estimate of its earnings for this quarter. But its stock price fell more than 3 percent on the same day. Due to direct mention of the COVID-19 shock. However, it recovered from the fall in the second half of the market. And closed down 1.8 percent from the previous day.
Shares of some related suppliers also headed downward on Apple’s warning. SkyWorks solutions, which supply various semiconductors, dropped 1.9 percent. While storage and computing solution provider Giling dropped 1 percent.
On the same day, China said that the number of COVID-19 deaths increased by 98 nationwide. And that the number of new confirmed people increased by 1,886.
Today’s economic reality may have alarmed global investors who continue to believe that Chinese authorities will be able to contain the COVID-19, said Eric Breger, head of foreign exchange strategy at Canada’s Korea Exchange Bank.
