Apple leads Wall Street in light markets
Wall Street's main indexes came under pressure yesterday following a 2.5pc drop in Apple's shares on a report of weak iPhone X demand.
Most markets around the world, including Europe and Asia, were shut yesterday. Trading volumes are also expected to be light in the Christmas week. Apple will slash its sales forecast for its flagship phone in the current quarter to 30m units, down from what it said was an initial plan of 50m units, 'Taiwan's Economic Daily' reported, citing unidentified sources.
That, along with a few bearish brokerage calls on iPhone X demand, put its shares on track for their worst single-day percentage fall since August 10.
Shares of companies that supply parts to Apple, including Broadcom, Skyworks Solutions, Finisar and Lumentum Holdings, fell between 2.2pc and 4.3pc.
The tech heavy Nasdaq fell 0.4pc to 6,932.08 as high-flying stocks, including Facebook, Amazon, Alphabet and Netflix, declined.
A long-promised US bill to cut corporate tax rates to 21pc from 35pc was ratified last week, but tech firms are now seen as less well placed to benefit.
"It looks to me that technology sector, already paying the lowest in taxes of around 24pc, will not get as much of an impact as the financial sector, which pays the highest," said Sandy Villere, portfolio manager of the Villere Balanced Fund.
The dollar held steady in yesterday's Christmas-thinned trade, shrugging off upbeat Japanese economic data.
The euro inched down 0.1pc to $1.1869. The single currency gave up some ground last week after Catalan separatists won regional elections, deepening Spain's political crisis.