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US Stocks Close Lower on Apple Warning 02/18 15:45

   Major U.S. stock indexes are closing mostly lower Tuesday, as the market 
gives up some of its gains from the past two weeks. 

   (AP) -- Major U.S. stock indexes are closing mostly lower Tuesday, as the 
market gives up some of its gains from the past two weeks. The selling, which 
lost some of its momentum in the final hour of trading, came as investors 
weighed the impact of the virus outbreak in China on Apple and other major 
companies. Tech companies and banks led the selling. Utilities and 
communication services stocks held up well. The S&P 500 index fell 0.3% to 
3,370. The Dow Jones Industrial Average slid 165 points, or 0.6%, to 29,232. 
The Nasdaq inched up less than 0.1%. Bond yields fell.

   Major U.S. stock indexes were mostly lower in late-afternoon trading 
Tuesday, putting the market on track to give up some of its solid gains from 
the past two weeks.

   The selling, which lost some of its momentum in the final hour of trading, 
came as investors weighed the impact of the virus outbreak in China on Apple 
and other major companies.

   The tech giant said revenue will fall short of previous forecasts in the 
fiscal second quarter because production has been curtailed and consumer demand 
for iPhones has slowed in China. Apple's stores there are are either closed or 
operating on reduced hours.

   Technology stocks accounted for a big slice of the selling. Apple shed 1.8%. 
Some chipmakers, which also rely heavily on China for sales and supplies, also 
fell. Intel shed 1.7%.

   Banks and energy stocks declined. HSBC said it will cut 35,000 jobs and shed 
$100 billion in assets. Its shares dropped 5.5%. Wells Fargo slid 2.5% and 
Schlumberger dropped 1.9%.

   Bond prices rose. The yield on the 10-year Treasury fell to 1.55% from 1.58% 
late Friday.

   Communication services stocks and utilities held up better than most of the 
market. Dish Network climbed 3.5% and Xcel Energy rose 1.4%.

   KEEPING SCORE: The S&P 500 index fell 0.3% as of 3:31 p.m. Eastern time. The 
Dow Jones Industrial Average slid 155 points, or 0.5%, to 29,242. It had been 
down 281 points. The Nasdaq recovered from an early slide, inching up less than 
0.1%. The Russell 2000 index of smaller company stocks fell 0.2%. European and 
Asian markets fell.

   CHINA OUTBREAK: The viral outbreak that began in China has now infected more 
than 73,000 people and continues to hurt businesses worldwide. The majority of 
the cases and deaths remain centered in China.

   Businesses continue to feel the economic impact from the virus. The Beijing 
auto show, the industry's biggest global event of the year, is being postponed 
indefinitely from its April date. And shares in Medtronic fell 3.7% after the 
medical device maker warned investors that the virus outbreak will impact its 
fourth-quarter results.

   Apple is among the most notable companies to warn investors that the virus 
will hurt its financial performance. While the projected revenue miss took Wall 
Street by surprise, some analysts played down the long-term impact of the 
iPhone production delay on Apple.

   In a research note Tuesday, Canaccord Genuity analyst Michael Walkley said 
that Apple continues to perform strongly across all business lines, including 
iPhone 11 demand outside of China.

   "Despite the lowered near-term iPhone sales estimates, we believe Apple 
remains on track to reach this target," Walkley wrote.

   Technology and health care companies have been the most vocal about 
mentioning the new coronavirus in their earnings conference calls, according to 
FactSet.

   LOTS OF BENJAMINS: Financial services company Franklin Resources jumped 7.7% 
after saying it is buying competitor Legg Mason for $4.5 billion. The deal will 
create a financial company with a combined $1.5 trillion in assets under 
management. Legg Mason shares vaulted 24.3%.

   EARNINGS SNAPSHOT: Traders continued to assess company earnings reports. 
Advance Auto Parts climbed 7.3% after the auto parts supplier's results topped 
Wall Street's forecasts. Conagra Brands dropped 5.5% after the food producer 
cut its fiscal 2020 profit and revenue forecasts, citing surprisingly weak 
consumption.

   WEEK AHEAD: Investors face a shortened week because of Monday's President's 
Day holiday, but there are still several key earnings and economic reports on 
tap.

   More than three-quarters of the S&P 500 has already reported financial 
results, and 51 companies are scheduled to release results this week. Devon 
Energy and Concho Resources will report their results later Tuesday. 
Progressive will report results on Wednesday and ViacomCBS will report on 
Thursday.

   The government will release its producer price index for January on 
Wednesday, along with housing starts data.


(CZ)

 
 
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