Nasdaq hits record despite Apple's coronavirus sales warning
Tech and financials hit the broader stock market
The Nasdaq scored a new record despite broader declines for the Dow Jones Industrial Average and the S&P 500 on Tuesday led lower by large-cap tech and financials.
Apple, was the worst performer in Dow, after warning production delays caused by the coronavirus outbreak would linger for longer than anticipated. Goldman Sachs was also a drag.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 37775.38 | +22.07 | +0.06% |
| AAPL | APPLE INC. | 167.04 | -0.96 | -0.57% |
| GS | THE GOLDMAN SACHS GROUP INC. | 403.11 | -0.82 | -0.20% |
Shares of the iPhone maker fell after the company warned its second-quarter revenue would miss its guidance of $63 billion to $67 billion. Suppliers in Asia and Europe also fell on the news. Every 1 percent drop in Apple shares will result in the Dow Jones Industrial Average falling 22 points, according to Dow Jones Market Data.
The latest figures from China's National Health Commission show the coronavirus has sickened at least 72,436 people in the country while killing 1,868.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 5011.12 | -11.09 | -0.22% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15601.498878 | -81.87 | -0.52% |
Looking at earnings, Walmart reported earnings and sales that fell short of Wall Street estimates but hiked its annual dividend.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 59.27 | -0.38 | -0.64% |
On the deal front, Franklin Resources reached a deal to buy rival Legg Mason for $4.5 billion, or $50 a share. Franklin will assume about $2 billion of outstanding debt.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BEN | FRANKLIN RESOURCES INC. | 25.02 | +0.21 | +0.85% |
| LM | n.a. | n.a. | n.a. | n.a. |
Elsewhere, Kroger gained after a filing showed Warren Buffett’s Berkshire Hathaway bought shares in the company for the first time.
U.K.-based HSBC Holdings PLC said Tuesday it will cut 35,000 jobs over three years as it downsizes its investment bank, sells $100 billion of assets and revamps its U.S. and European businesses.
Pier 1 Imports filed for Chapter 11 bankruptcy on Monday, and said it intends to sell the company.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KR | THE KROGER CO. | 55.56 | +0.30 | +0.55% |
| HSBC | HSBC HOLDINGS PLC | 40.39 | +0.41 | +1.03% |
| PIR | n.a. | n.a. | n.a. | n.a. |
Commodities traded mixed, with West Texas Intermediate crude oil flat at $52.06 a barrel and gold up 1 percent to $1,600 an ounce, the highest level since April 2013.
U.S. Treasurys rallied, pushing the yield on the 10-year note down by 3.2 basis points to 1.556 percent.
In Europe, Germany’s DAX paced the decline, down 0.8 percent, while Britain’s FTSE and France’s CAC fell 0.7 percent and 0.5 percent, respectively.
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Markets were mostly lower across Asia with Hong Kong’s Hang Seng and Japan’s Nikkei down 1.5 percent and 1.4 percent, respectively. Meanwhile, China’s Shanghai eked out a 0.1 percent gain.