Apple’s Forecast Adjustment: Why it Could Be a Sign of Trouble for the Markets
Jan 04, 2019 (Baystreet.ca via COMTEX) —
Apple Inc (NASDAQ:AAPL) had to adjust its forecast for the quarter and its stock was down as a result, but so were many others. The Dow Jones dropped 660 points on Thursday as stocks had yet another bad day.
Not only does Apple impact the Dow Jones, but its problems can impact the entire tech industry as well. Especially when the company notes that its adjustment relates to China and the ongoing trade issues, that’s not going to be a good sign for other tech stocks. After all, if Apple’s having these issues, who knows if we’ll see this type of correction made from its peers or other companies that have a significant presence in that part of the world.
It underscores just how significant trade is and quantifies the impact a trade war could have on Apple’s long-term success. And with Apple being such a significant stock – last year it was the first to hit $1 trillion in market cap – people take notice of these issues at a more macro level, in particular: investors.
It’s no surprise then that as Apple has fallen from the highs it reached last year, so too have many other stocks in the U.S. markets. And how well the company is able to rebound from this latest setback will be a sign of how well the stock market will perform as well.
The good news is that after a big sell-off like this there is usually a bit of an overreaction involved, and so we could see a bit of a recovery in the weeks and months ahead from both Apple and the markets.