Apple stock tumbled, taking down the Dow Jones Industrial Average.
U.S. stocks dropped Tuesday, following on Friday’s decline. U.S. stock markets were closed Monday for Presidents Day.
Investors can blame the coronavirus outbreak again. IPhone maker Apple (ticker: AAPL) warned investors it wouldn’t meet quarterly financial guidance because factories in China were coming back online—after the Lunar New Year holiday—slower than expected. What’s more, iPhone demand in China is also being impacted by the coronavirus outbreak. Apple stock fell 1.8%.
The Dow Jones Industrial Average, of which Apple is a component, fell 0.6%, or 165.89 points, to 29,232.19. The S&P 500 dropped 0.3%. Surprising, the tech-heavy Nasdaq Composite eked out a tiny gain, rising 0.02%.
Electric-vehicle pioneer Tesla (TSLA) helped bail out the Nasdaq. Tesla stock continued an epic run, rising more than $58, or 7.3%, to $858.40. Tesla is the world’s second-most-valuable car company with a market capitalization of almost $160 billion. And it was the largest gainer in the Nasdaq Tuesday. Tesla isn’t in the S&P 500 or Dow.
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Tesla shares rallied as more analysts raised their price targets. None of the analysts actually changed stock ratings, or raised target prices above where shares are trading. Still, higher targets from more bearish analysts are still an acknowledgment that things are looking better for the EV maker.
Legg Mason stock (LM) also has a good day, soaring more than 24. The asset manager agreed to be acquired by Franklin Resources (BEN). Franklin stock also rose 6.9% on the news.
Earnings reports are still coming in. Big-box retailer Walmart (WMT) stock rose 1.5% after reporting so-so earnings. Earnings per share of $1.38 missed a Wall Street consensus EPS estimate for $1.44. Earnings expectations, apparently, were coming down into the report.
Conagra Brands (CAG) investors weren’t as lucky as Walmart investors. The market didn’t forgive a weak financial update. Conagra cut full-year guidance on Monday because of softness in its food-service business. Shares fell 6.2%.
Write to Al Root at allen.root@dowjones.com
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February 19, 2020 at 05:23AM
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Dow Jones Industrial Average Fell as Apple Stock Is Exposed to the Coronavirus - Barron's
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