Wall Street in a sea of red, Apple dropped nearly 10%
- The Dow Jones Industrial Average DJIA, shed 661.58 points, or 2.8%, to 22,684.66.
- The S&P 500 index dropped 62.18 points, or 2.5%, to 2,447.87.
- The Nasdaq Composite was damaged the most, falling by 202.43 points, or 3%, to 6,463.50.
Benchmarks were ending sharply lower on Thursday, following Apple Inc’s Tim Cook announced a downgrade of quarterly projections, put largely down to U.S./ China trade tensions and the economic performance in the emerging markets which have scaled up the concerns over the global growth outlook. Apple’s stock dropped almost 10% after the company slashed its quarterly revenue outlook, blaming its lowered projections on soft iPhone sales in Asia.
As for data, the Institute for Supply Management's manufacturing index fell to 54.1% in December, down from 59.3% the month before. "The Fed is likely to be concerned with slowing momentum in the manufacturing sector, but will be looking at Monday's release of the non-manufacturing index as well, which represents a much larger share of the economy, and at the labour market. We are currently forecasting two more rate hikes from the Fed, but the Fed is likely to be much more data dependent in 2019 and will probably need stable financial markets as well as continued falling unemployment to continue hiking," analysts at Nordea explained.
- Support levels: 22460 22105 21456
- Resistance levels: 23076 23337 23691
Meanwhile, the DJIA index is vulnerable below the support of the 38.2% Fibo retracement of the Dec decline from 26072. A close below the 23.6% Fibo will be very bearish bringing in the 22000 with a view to breaking below Dec 2018’s low of 21456.