Dow Falls 660 Points as Apple Stokes Global-Economy Worries

Dow Falls 660 Points as Apple Stokes Global-Economy Worries

The Dow Jones Industrial Average soared 700 points in the latest twist in a wild three months for markets. Still, manufacturing gauges are weakening as tariffs start to bite - and that's happening in China too. The trade tensions have dragged on for almost a year and uncertainty over their outcome has dragged down stock indexes around the world.

At 8:30 a.m., the Labor Department said the US economy added 312,000 jobs in December. Cook said "rising trade tensions" with the United States are impacting China's economy.

Apple's stock plunged 7 percent to $146.40 in Wednesday's extended trading. Analysts expect the U.S. added 180,000 jobs last month and unemployment held at 3.7 per cent.

And it puts us in a very strong position.

Stocks rallied on Friday after Federal Reserve Chairman Jerome Powell said the central bank will be patient in raising rates.

Until recently, the Fed had suggested it planned to raise short-term interest rates three times this year and next, and Powell said the Fed's balance sheet was shrinking "on auto-pilot".

Thursday's selloff shows how numerous same fears that made 2018 the U.S. stock market's worst in a decade are still roiling markets. The Russell 2000 index surged 47 points, or 3.6 per cent, to 1,378. Earlier it gained as much as 832.

The S&P 500 posted no new 52-week highs and 4 new lows; the Nasdaq Composite recorded 9 new highs and 58 new lows.

Only 10 companies on the S&P 500 fell, and 90 per cent of the stocks on the New York Stock Exchange traded higher.

President Donald Trump said he isn't concerned that Apple Inc has warned sales will fall short of expectations because of the trade war with China, an announcement that provoked a sell-off in the U.S. stock market. Technology companies took their biggest losses in seven years.

The U.S. and China have raised tariffs on billions of dollars of each other's goods in a fight over issues including Beijing's technology policy.

A USA delegation is due to travel to Beijing to hold negotiations Monday, but Trump said he and Chinese leader Xi Jinping already have been actively engaged in the talks.

Technology and energy stocks are leading the broad gains. Copper rose 3.1% to $2.65 a pound.

Analysts are now taking a dim view of rising corporate earnings in light of the more challenging global environment marked by slowing global economic growth.

More broadly, the analysts wrote that while Greater China accounted for the majority of the short fall, iPhone sales in other emerging markets also declined. Chipmakers, which count both Apple and China as major revenue generators, led the decliners in early premarket trading, while trade bellwethers Boeing Co and Caterpillar Inc dropped over 2 percent.

Also adding to investor concerns was a report that showed manufacturing activity in US factories was slowing to its lowest level in two years.

NEW YORK-Global stocks are soaring Friday and reversing the big losses they suffered just a day earlier. Then again, with the political environment being what it is today, we can't realistically say that it's all that surprising. "And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves".

Bond prices also changed course and moved sharply lower.

Apple (AAPL), among the world's most widely held stocks, plummeted 10% in its darkest day in six years. That rise helps banks, as higher interest rates enable them to make bigger profits on mortgages and other loans.

The economy created 2.6 million jobs previous year compared to 2.2 million in 2017.

In Asia, Hong Kong's Hang Seng jumped 2.2 per cent. South Korea's Kospi added 0.8 percent. The slowdown in the Chinese economy also impacted its revenue, he said.

Samsung said last month it would cease operations at one of its mobile phone manufacturing plants in China, after seeing its share of the Chinese market drop to 1 percent in the first quarter of 2018 versus 15 percent in mid-2013.

USA crude oil surged 3.3 per cent to $48.63 a barrel in NY.

The dollar strengthened to 108.51 yen from 107.77 yen. The euro fell to $1.1352 from $1.1391. The British pound rose to $1.2740 from $1.2630.

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