Trump-China Squabbling Sends Stocks – and Apple – Tumbling

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| Analysis

Upside Down $AAPLPresident Donald Trump’s ongoing trade war with China rattled Wall Street on Monday, sending the markets tumbling. The DOW lost more than 800 points, and Apple was caught up in the mayhem, too. Shares of Apple ended the day at US$193.34 per share, a loss of $10.68 (-5.23%), on heavy volume of 50.7 million shares trading hands.

Apple wasn’t  random victim, however, as the company is considered to have significant exposure to trouble with China. Apple manufactures most of its hardware in China, and that hardware is potentially subject to tariffs President Trump is imposing on goods imported from China. Wall Street is concerned both about the effect that could have on Apple’s sales and profits in the U.S., and how any slowdown of China’s economy might affect sales in that country.

Then there’s the ongoing pro-democracy unrest in Hong Kong and what is being seen as a deliberate devaluation of the Chinese Yuan. China’s government usually steps in when the Yuan drops, but did not when the Yuan dropped on Monday. Analysts are seeing this as a sign that China’s Communist rulers have accepted they won’t be able to work out a deal with the U.S. any time soon, and are using the Yuan drop to help bolster domestic manufacturing. Wall Street is not keen on a protracted trade war.

It’s a big bunch of political mess, and an example of how Apple has grown to be so large that factors that have little to do with Apple’s execution of its strategy can still have an effect Apple’s stock valuation.

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gGrant
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gGrant

Hong Kong will get much worse before it gets better. US media isn’t giving it much coverage. Try Aljazeera.

geoduck
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geoduck

I was going to comment on the article but a bigger issue has come up. Bryan, I understand the need for web security, but geeze this is a bit much. You click on login and it delays, and delays, and delays, 5 seconds my *** Then you log in but a third of the time it asks you to solve a math problem. When you do it doesn’t let you in, it sends you back to log in all over again. I’m typing this on my iPad because on my Mac it’s stuck in a loop. I log in and… Read more »

Dave Hamilton

Hey, geoduck! Sorry about the headache. 😉 How often are you needing to login? The Cloudflare security we put in place to stop the script-kiddies from beating on the login page should really only come up once in a very rare while, and only when visiting the login page. It sounds like perhaps something is amiss on your Mac that’s causing multiple relogins repeatedly. First step would be to just go into your browser and delete your cookies. If that’s Safari, go to Preferences > Privacy > Manage Website Data… > type “macobserver.com” into the search field > highlight the… Read more »

geoduck
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geoduck

On my Mac it’s almost every time I go to the page. It makes no difference whether Remember Me is checked. On my iPad it’s once every few days. I’m using the latest macOS and iOS and Safari.

I gotta get going right now, but I’ll try clearing website data when I get home.

geoduck
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geoduck

Okay, not sure what changed, I havent had any time to follow up. But the lockout on my Mac is gone. I still get the five second delay most times, but haven’t seen the rest. I’ll try clearing data when I get home and will let you know what it looks like.