Last Friday we noted traders would likely take a cautious stance heading into the long weekend that saw US equity markets closed yesterday in observation of Presidents’ Day and we were correct in our thinking as stocks gave back most of their gains to finish the day little changed. That concern proved to be on the nose as Apple (AAPL) pre-announced that it would not meet its revenue expectations for the current quarter that it laid out on Jan. 28, which was wider than usual as the company looked to account for the impact of the coronavirus – see more in Stocks to Watch.
As we’ve all come to realize in recent weeks, the scope of the virus’s impact has been far greater than many initially expected and even as China looks to get back to work, that resumption has been slower than expected. This morning we are seeing that play out in the latest ZEW Indicators for both the Eurozone and Germany, and as we point out in today’s Data Download China is a larger trading partner for the US than Germany, and likely means we will be hearing more reports like the one from Apple in the coming days.
- Qualcomm (QCOM) and Walmart (WMT) are constituents in Tematica Research’s Thematic Dividend All-Stars Index.