Apple issues profit warning as iPhone/iPad sales fail to hit targets

President Donald Trump

President Donald Trump

Both the global powers are now under pressure to end a trade war that is hurting their economies as well as global financial markets.

"As much as we all got nervous about Apple yesterday ... this puts a counter to that", he added.

At the White House news conference, Trump was asked whether he was concerned about Apple's earlier this week.

With the Chinese economy slowing, "I really think they want to" reach an agreement, he told reporters. "I think they sort of have to".

Beijing on Friday cut bank reserve requirements for a fifth time this year amid slowing growth at home and punishing United States tariffs on exports.

"This employment report suggests the US economy still has considerable forward momentum". "We are doing very well", Trump said.

Apple's latest comments fueled worries that its relatively high-priced devices may be falling out of favor in China, where rivals such as Huawei Technologies Co Ltd [HWT.UL] offer cheaper options. If we don't, they're paying us tens of billions of dollars' worth of tariffs. Cook said "rising trade tensions" with the United States are impacting China's economy.

Apple lowered its revenue guidance, which led to a fall in its stock, due to weaker than expected iPhone sales, particularly in China. I mean look, they've gone up a lot. Berkshire, which owns more than 250 million shares of Apple, dropped 5%.

Apple's stock plunged 10 per cent, erasing US$67 billion in value.

Buy Tesla Stock on the Dip, Analyst Says
If Tesla were to pay the $3,750 difference between credit amounts on 3,000 cars, it would cost the company more than $11 million. Wall Street analysts and investors cheered the news, with Tesla shares rising as much as 3.5 per cent to $327.18 Friday in NY .

Apple's warning follows data earlier this week that showed a deceleration in factory activity in China and the euro zone, indicating the ongoing trade dispute was taking a toll on global manufacturing.

USA stocks suffered another day of volatile declines, with the Dow Jones Industrial Average falling 660 points, or almost 3%, as Apple's warning that revenue in the busy holiday quarter would be weaker than expected amplified concerns about a global economic slowdown.

In the memo dated Thursday, Huawei's corporate senior vice president Chen Lifang said the gaffe took place when Sapient used an iPhone with a Hong Kong SIM card to send the Twitter greeting after experiencing "VPN problems".

The Dow dropped 660 points, or 2.8%, on Thursday after Apple warned it will badly miss its quarterly sales forecast because of weakening growth and trade tensions in China.

Talks in Switzerland would follow a meeting due to start in Beijing on Monday between USA and Chinese officials, the first formal gathering between the two sides since Trump and Chinese President Xi Jinping agreed to a 90-day tariff truce in December, following a widely-anticipated dinner at the Group of 20 meeting in Buenos Aires.

Blais said investors should brace for a continued roller coaster ride as markets compare news and upcoming earnings with expectations. The talks begin on December 31.

The ministry said the two sides "confirmed" the dates in a phone call on Friday morning, but did not provide other details.

"We see the potential for further downside to FY19 numbers depending on the trajectory of Chinese demand in early 2019", Hall said in a note to his clients obtained by CNBC on Wednesday. The yield on the 10-year Treasury surged to 2.64 percent. Preliminary discussions have been "a little more optimistic than usual", White House economic adviser Larry Kudlow told Bloomberg TV on Friday.

The February crude contract was up 87 cents USA at US$47.96 per barrel after a report that U.S. crude inventories remained essentially unchanged.

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