Research shows that switching 401(k)s to after-tax contributions would boost tax returns in the short term, but leave retirees worse off.
When Kristin and Thomas Schmitt took out a mortgage and bought a house last summer, the German couple's dream looked as if it was coming true. Two months later, they learned that the tire factory where both work would be shut down early next year. A malaise in Germany's mighty automobile industry, caused by weaker demand from abroad, stricter emission rules and electrification, is starting to leave a wider mark on Europe's largest economy by pushing up unemployment, eroding job security and hitting pay.
To say that the new Form 1040-SR closely mirrors the 2019 version of the “regular” Form 1040 is an understatement. * Instructions for both the new Form 1040-SR and the 2019 version of the regular Form 1040 are included in the same document (TAX YEAR 2019 1040 and 1040-SR INSTRUCTIONS). For both the new Form 1040-SR and the 2019 version of the regular Form 1040, IRA distributions and income from pensions and annuities are reported on separate lines on page 1 of the forms.
During the California gold rush, many miners went bankrupt. Most investors recognize that the gold rush is on in 5G and artificial intelligence. The picks and shovels for the present-day gold rushes are semiconductors.
While each investor has their own way of going about it, at the end of the day, the common theme unifying all is the universal pursuit of returns. The difficult part, of course, is recognizing the names which can outperform the market in the long run.All stocks are different, though, and finding those which can potentially yield said returns requires due diligence. Naturally, the research should include what the pros on the Street think about a company’s long-term growth narrative.Using TipRanks’ Stock Screener, we’ve dug up two healthcare stocks that look especially promising. While each one is unique, the tickers have two things in common: all have room for upside of more than 100%, and what’s more, each one currently boasts a “Strong Buy” consensus rating from the Street. Let’s get started.Applied Genetic Technologies (AGTC)This rare retinal disease-focused biotech has started 2020 in the same way it exited the previous decade: by adding extra muscle to the share price.2019’s performance saw an addition of a considerable 84%. 2020 has started off in much the same vein, with the company giving market-trouncing Tesla a run for its money in January by shooting up over 100% in one day. The reason? Well, as this company is a biotech, it’s usually due to one of two reasons: either a regulatory approval for a drug, or, as in this particular case, positive data from a clinical trial.AGTC recently presented updated data from its Phase 1/2 study of centrally-treated X-linked retinitis pigmentosa patients. The positive results showed that patients treated with the candidate exhibited durable improvement in visual function six months after dosing. The data backs up results reported in September and will be used in the pivotal trial’s design, which AGTC plans to initiate later this year. Not to mention secondary data showed encouraging improvements in Best Corrected Visual Acuity (vision impairment) and a favorable safety profile was demonstrated by all patients dosed with the drug.The results are music to the ears of H.C. Wainwright’s Joseph Pantginis. Pantginis argues the "highly anticipated" data confirmed his expectations on the performance of the company's therapy. According to the analyst, an upcoming meeting with the FDA should provide critical guidance on endpoints, size and statistics, randomization protocol, and bilateral dosing.To this end, the 5-star analyst reiterated a Buy rating on AGTC along with an $18 price target. The implication for investors? Further gains of a massive 252%. (To watch Pantginis’ track record, click here)A fellow analyst beating the drum for the bulls is Wedbush’s David Nierengarten. The 5-star analyst believes Applied Genetic is the market leader in X-linked retinitis pigmentosa and lists the company as one of his top picks for 2020. Accordingly, Nierengarten kept his Outperform rating on AGTC along with his $12 price target, too. (To watch Nierengarten’s track record, click here)Does the Street concur? Yes, it does. 5 Buy recommendations add up to a Strong Buy consensus rating. The average price target of $13.33 implies gains of 160% could be lining investors’ pockets in the next year. (See Applied Genetic price targets and analyst ratings on TipRanks) Sol-Gel Technologies Ltd (SLGL)The other company on our list continues the pattern established by AGTC. Totally outpacing the market last year, this skin disease-focused company from Israel posted yearly gains of 172%, the majority of which came in the final week of the decade. It will be no surprise to learn why.On December 30, Sol-Gel announced that its acne drug Twyneo met the primary endpoints in two late-stage trials. The company intends to file a new drug application (NDA) with the FDA for Twyneo in the second half of 2020, with hopes of bringing it to market in 2H21. The application will be the second one this year, as plans are already in place to submit one for Epsolay, the company’s rosacea candidate, during the first half of 2020.The global acne market is expected to be worth over $7 billion by 2025, a point not lost on H.C. Wainwright’s Ram Selvaraju. The 5-star analyst believes the positive results for Twyneo have increased its probability of approval to 90%, up from his previous estimate of 70%. Selvaraju notes that should the drug get the go ahead, it will be the first once-daily acne vulgaris treatment to combine benzoyl peroxide and a potent retinoid in a cream.The analyst, therefore, kept his Buy rating as is. The positive data, though, meant the price target got a boost, from $23 to $26. Investors stand to take home gains in the shape of 145% should his thesis play out. (To watch Selvaraju’s track record, click here)The Street is with the H.C. Wainwright analyst. The acne warrior has 4 ratings, all Buys, which put together, amount to a Strong Buy consensus rating. The average price target of $22.75 implies potential upside of 115% in the next 12 months. (See Sol-Gel stock-price forecast on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
(Bloomberg) -- Tesla Inc.’s potential to become a key battery supplier for electric vehicles has prompted a bearish analyst on the carmaker to nearly double his bull case for the shares.Morgan Stanley’s Adam Jonas increased his most optimistic projection for Tesla to $1,200 a share from $650. That’s about 50% above the U.S. company’s $800.03 closing price Friday and would give Tesla a market capitalization of $220 billion. Jonas raised his base case target to $500 a share from $360 but reiterated his underweight recommendation.The new bull scenario is based on an “aggressive assumption” that Tesla could win 30% of the global electric-vehicle market, Jonas wrote in a report to clients. This would include 4 million car deliveries by 2030 plus the potential for Tesla to supply powertrains, including batteries and electric motors, to other auto manufacturers. In 2019, the company handed over 367,500 vehicles to customers.Tesla shares have had a wild ride this year. The stock is up 91% in 2020, a jump variously attributed to good results, a short squeeze, the opening of a key new factory in China or an extreme case of investor FOMO -- or all of the above. The surge cooled before the Palo Alto, California-based company undertook a $2 billion share offering Friday, priced at the steepest discount the carmaker has ever given to its investors.Analysts either have yet to adjust to the gain or remain highly skeptical. The average share-price target among analysts tracked by Bloomberg is $489.47, or 39% below the current level.Morgan Stanley’s bear case for the stock is now $220. While that’s a 91% improvement from the broker’s most recent worst-price scenario, Jonas is sticking to his recommendation against buying the stock, saying the risk-reward balance on the manufacturer continues to be “unfavorable.”\--With assistance from Lisa Pham and Catherine Larkin.To contact the reporter on this story: Sam Unsted in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Beth Mellor at email@example.com, Tom Lavell, Namitha JagadeeshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
DuPont Inc. said Friday that Chief Executive Marc Doyle and Chief Financial Officer Jeanmarie Desmond are leaving the company, effective immediately. The specialty materials and chemicals company said Executive Chairman Ed Breen would take on the additional role of CEO and Lori Koch, vice president of investor relations and corporate financial planning, will be CFO. "While we made some progress in 2019, we did not meet our own expectations and we now need to move aggressively to secure our foundation for growth," Breen said. "We have solid businesses, but, as we discussed on our recent earnings call, we need to accelerate operational improvement and make sure we are taking appropriate action to deliver on our commitments for the year." DuPont's stock, which tacked on 0.4% in premarket trading, has tumbled 31.2% over the past 12 months through Friday, while the Dow Jones Industrial Average has gained 13.6%.
Futures fell as Apple warned on sales, citing the coronavirus impact on iPhone output and demand. Walmart earnings missed. InMode earnings are due.
A small provision in the Secure Act aims to help retirement savers translate the nebulous balance on their 401(k) statements into an estimated monthly income in retirement. Two other provisions allow for expanded use of “529” plans and penalty-free withdrawals from 401(k)s for adoptions and childbirth.
Kroger Co.’s stock soared in after-hours trading Friday following the disclosure that Warren Buffett’s Berkshire Hathaway conglomerate has made a huge investment in the supermarket giant’s stock.
The semiconductor industry is turning around. It’s no secret that chip stocks lost heavily in 2H18, and had difficulty regaining traction through much of 2019. But in recent months, many of the big chip makers have seen sharp gains.While individual companies will show idiosyncratic reasons for gains, the sector as a whole has been positively impacted by three major factors starting in 2H19. First, and probably most important, is the continuing expansion of 5G mobile networks. The wireless switchover requires new types of modem chips to handle the new signal bands, and chipmakers are seeing increased orders from the original equipment manufacturers (OEMs). Wireless handsets, routers, modems, transmitters, towers – all of these will need the new chips.The next main factor is continued demand for memory chips. Data centers are expanding, meeting an urgent need in the digital economy, and the chip makers are seeing orders for new, more powerful, memory and processing chips. Those same chips are also finding customers in the online gaming community. The memory and processing requirements for business and gaming applications frequently overlap, and gamers are notorious for wanting the best systems they can afford.Finally, on the geopolitical front, the US and Chinese governments signed off on the Phase 1 agreement of a trade deal, an important development that promises to defuse the long-running trade and tariff disputes between the world’s two largest economies. Chip makers were exposed to the ‘trade war’ on multiple fronts – as exporters from both the US and China, as suppliers of parts to reexported Chinese electronic goods, and as components in goods imported to the US. Reduced trade tensions in 2020 promises to boost the chip industry.So, we should expect to see several interesting points among the major chip stocks. They are likely to carry Buy ratings, on mixed reviews from analysts; they are likely to show modest upside, as the analysts have not yet adjusted their outlooks; and they are likely to have recent strong reviews. We’ve pulled up the data on three of the larger chip stocks, and looked at them through the TipRanks Stock Comparison tool. Here are the results.Advanced Micro Devices (AMD)AMD, the first stock on our chip list, has gained 43% in the past three months. The company is a leader in both the graphics processors and motherboard chipset segments, and its x86 microprocessors are major competitors to industry giant Intel. AMD can boast that strong sales are fueling growing revenues, despite lower guidance for Q1 2020.Did the lower forward guidance really merit a 4% share price drop at the end of January? We can get an idea by looking at the Q4 numbers. AMD reported EPS at 32 cents against a 31-cent forecast. Revenue was $2.13 billion, beating expectations, growing 18% sequentially, and showing an impressive 50% gain year-over-year. For fiscal 2019, total revenue grew $6.73 billion, or 4%.So, Q4 was strong. Looking ahead, the company guided for $1.8 billion in Q1 revenue (matching Q3 results) against an expectation of … $1.86. That 3% difference was it. And AMD shares have, since the earnings report, regained the 4% loss.One measure of AMD’s strength comes from Mitch Steves, a 5-star analyst with RBC Capital. Steves released two notes on the stock last week – and he raised his price target in both. In the first, on February 10, he bumped his target from $53 to $64, writing, “We raise our 2021 EPS estimate to $2.10 as we think share gains in PCs will continue to move into the mid-20 percent market share range and we have higher conviction in server units in both 2020 and 2021.”In the second note, on February 13, Steves revised his opinion after Nvidia (more below) released strong quarterly results. Nvidia’s results imply a healthy gaming sector, and AMD is well-positioned to capitalize on gaming sales. Steves’ current price target on AMD, backing his buy rating, is $66, implying an upside of 19%. (To watch Steve’s track record, click here)AMD’s recent sharp gains have pushed the stock’s share price well above the average price target, and analysts have not yet readjusted their outlook. As Steves’ double target upgrade show, events in the chip industry are moving quickly. AMD’s Moderate Buy consensus rating is based on mixed reviews, and includes 11 Buy and 13 Holds. (See AMD stock analysis at TipRanks)Nvidia Corporation (NVDA)In an interconnected sector like semiconductor chips, nothing happens in a vacuum. We mentioned Nvidia above, in relation to gaming chips. This company is a market leader in graphics processing units (GPUs), a key component in both professional and gaming computing systems. The memory and performance requirements of the graphic design industry run parallel to those of high-end gamers. Nvidia’s expertise with high performance memory chips has also made its products valuable in the data center market.With its foundations firm in several markets – professional designers, data centers, and gamers – Nvidia has built up a $186 billion market cap and an annual sales base near $12 billion. With that strong base, NVDA reported both earnings and revenue beats in Q4 2019.On the top line, revenue came in at $3.11 billion, up 3% sequentially, an impressive 41% year-over-year, and beating the forecast by 5%. EPS was reported at $1.89, a solid 14% over the estimate – and an eye-popping 136% year-over-year gain. The GPU segment rose 40% annually, and gaming revenues were up 56%. Nvidia’s data center business showed a 33% sequential gain and a 43% annual gain. It was good news all around, even for a stock that has seen 42% growth in the last three months, on top of 76% gains in calendar 2019.Nvidia’s strong quarter impressed Cowen analyst Matt Ramsay. Ramsay, who rates 5-stars by TipRanks and is ranked 37 overall in the analyst database, reiterated his Buy rating for Nvidia and raised his price target on the stock by 35%, to $325. His new price target implies an upside potential to the stock of 12%.In his note on NVDA, Ramsay wrote, “[We] believe the results and guidance are driven by a cloud CapEx recovery and the driving force of real-time conversational AI with the scaled ramp of Ampers still to come.” (To watch Ramsay’s track record, click here)All in all, NVDA shares hold a Strong Buy rating from the analyst consensus, based on 23 Buys and 6 Holds given in recent weeks. Shares are not cheap, selling for $289.79. The average price target is $308.85 which suggests room for a modest upside of nearly 7%. (See Nvidia stock analysis at TipRanks)Micron Technology (MU)Last on our chip list Micron, the chip industry’s fifth largest player by sales volume, with over $30 billion in annual sales. The company saw its supply chains – both for manufacturing components and finished products – highly impacted by the US-China trade dispute, but the recent Phase 1 agreement relieved that pressure. Micron compensated by lowering guidance on fiscal Q1, and now the results are in.Micron cleared the lower bar. EPS met the estimates, while revenues beat. The top line number was $5.144 billion for the quarter, 2.3% over the forecast – but, down 35% year-over-year. The annualized drop reflects the lower demand and higher costs in 2019, due to industry pressures related above. EPS, at 48 cents, was as expected, but also showed a steep yoy decline. Still Micron met the analysts' expectations for the quarter, investors were satisfied, and the stock is up 7.2% since the earnings release.Micron’s position leading the DRAM chip segment gives the company a clear path to profit from the 5G switchover as the new networks expand nation- and worldwide. And, as with Nvidia and AMD, Micron boasts profitable business in the gaming and data center markets. The company’s diverse customer base should allow it to weather a period of lower earnings, while it adjusts to the new market’s new demands.In the last few days, MU shares have received two upgrades from Wall Street analysts. The first, on February 6, came from 4-star analyst Chris Caso of Raymond James. Caso sees the demand for DRAM memory chips as “likely to improve further at the year progresses.”With that in mind, Caso raised his outlook on the stock from Neutral to Buy and set a $70 price target. Caso’s target implies an upside of 19% to MU shares. (To watch Caso’s track record, click here.)The second upgrade came on February 16, from Timothy Arcuri, 5-star analyst with UBS. Arcuri also raised his outlook from Neutral to Buy, and went further with the price target. He bumped that up by 59%, from $47 to $75. The new price target indicates real confidence in the stock, along with a robust 28% upside potential.Supporting his upgrade, Arcuri writes, “After only modestly outperforming the S&P 500 over the past two years, we believe the time has finally come when Micron can materially outperform over a sustained period of time… Micron is in a much stronger position in a structurally better industry on the cusp of a cyclical upswing that, for DRAM, should last deep into C2021.” (To watch Arcuri’s track record, click here)Micron shares are selling for $58.50, and the average price target of $66.96 suggests that there is room for a 14% upside to the stock. The Strong Buy analyst consensus rating is based on no fewer than 22 Buys, against just 2 Holds and 2 Sells. (See Micron stock analysis at TipRanks)
(Bloomberg) -- U.S. equity-index futures fell along with European stocks on Tuesday after Apple Inc. said quarterly sales would miss forecasts, spooking investors who had hoped for a limited economic impact from the deadly coronavirus. Treasuries rose and the dollar edged higher.Contracts on the three major U.S. equity benchmarks dropped, with Apple shares slumping as much as 4.2% in pre-market trading after the iPhone maker warned on both production and sales disruptions due to the epidemic. In Europe, tech companies were among the biggest laggards in the Stoxx 600 index as Apple suppliers including Dialog Semiconductor Plc and AMS AG slid. HSBC Plc tumbled the most in more than a decade after saying it will slash jobs in a “fundamental restructuring,” while also flagging risks due to the virus.Equity benchmarks in Tokyo, Seoul and Hong Kong saw declines of over 1%, while stocks in Shanghai fluctuated. European bonds climbed, while the euro edged lower after a German investor-confidence index plunged. Crude oil retreated toward $51 a barrel in New York on concern the illness will cut fuel demand.Corporate reports on Tuesday raised renewed concerns about the coronavirus impact, even as the growth rate of cases in China’s Hubei province -- the epicenter of the disease -- continues to stabilize. It’s a turnaround from Monday, when sentiment was lifted by Chinese policy makers’ moves to support companies hit by the prolonged shutdown of large parts of the country. BHP Group said commodity prices will take a hit if the fallout extends beyond the end of next month.“Sentiment toward global risk turned sour today,” said Dariusz Kowalczyk, an emerging-markets strategist at Credit Agricole SA. “We continue to believe that markets have not yet fully priced in the magnitude of the hit to China’s economy as a result of the Covid-19 outbreak.”Elsewhere, the Australian dollar weakened after the Reserve Bank of Australia said it reviewed the case for a further rate cut at its last meeting, but didn’t go ahead. Emerging-market stocks and currencies fell, led by South Africa’s rand.Here are some key events coming up:Earnings season rolls on, with results from Deere & Co. set for Friday.Minutes of the most recent Federal Reserve meeting are published on Wednesday.Indonesia is expected to cut interest rates on Thursday, following emerging-market peers that have already moved.Group of 20 finance ministers and central bank chiefs are scheduled to meet Feb. 22-23 in Riyadh, Saudi Arabia, and are expected to discuss efforts to support growth amid the coronavirus threat.These are the main moves in markets:StocksThe Stoxx Europe 600 Index sank 0.5% as of 7:06 a.m. New York time.Futures on the S&P 500 Index declined 0.5%.The MSCI All-Country World Index declined 0.3%.The U.K.‘s FTSE 100 Index decreased 1%.CurrenciesThe Bloomberg Dollar Spot Index increased 0.1%.The euro declined 0.1% to $1.0824.The British pound climbed 0.2% to $1.3038.The Japanese yen appreciated 0.1% to 109.73 per dollar.BondsThe yield on 10-year Treasuries declined four basis points to 1.54%.The yield on two-year Treasuries fell three basis points to 1.40%.Germany’s 10-year yield declined two basis points to -0.42%.Britain’s 10-year yield decreased three basis points to 0.613%.CommoditiesWest Texas Intermediate crude sank 1.8% to $51.11 a barrel.Gold strengthened 0.4% to $1,587.48 an ounce.\--With assistance from Benjamin Dow, Andreea Papuc and Joanna Ossinger.To contact the reporter on this story: Robert Brand in Cape Town at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Yakob PeterseilFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Futures: Walmart, Medtronic and InMode earnings are due Tuesday. IPO stocks InMode, Progyny, Ping are near buy points. So is Taiwan Semiconductor. Buffett-boosted RH is likely to break out.
The Tennessee Department of Treasury made some big changes in its stock investments in the last quarter of 2019. The department, which manages all of the state’s investments, including its pension fund, reduced investments in (GE) (ticker: GE), General Motors (GM) and (VZ) Communications stock (VZ) in the fourth quarter. Tennessee’s treasury also bought more (WMT) stock (WMT).
Kraft Heinz became the largest high-yield bond issuer last week, after it was downgraded by two of the big three rating agencies. Bond investors had been waiting for such a scenario: where big companies that rushed to borrow cheap money after the 2008 financial crisis fail to reduce their debt burdens, and are punished by the rating agencies.
The silver markets have rallied a bit during the trading session on Monday, as we continue to see strength in the precious metals markets. That being said, we did give back a significant portion of gains.
Shares of Medtronic PLC fell 1.4% in premarket trading Tuesday, after the Dublin-based medical technology company reported a fiscal third-quarter profit that beat expectations but revenue that missed. Net income rose to $1.92 billion, or $1.42 a share, from $1.27 billion, or 94 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $1.44, above the FactSet consensus of $1.38. Sales grew 2.3% to $7.72 billion, below the FactSet consensus of $7.81 billion, as the company's cardiac and vascular and minimally invasive therapies segments missed expectations, the restorative therapies sales were in line and the diabetes segment sales topped expectations. The company raised its full-year EPS guidance range to $5.63 to $5.65 from $5.57 to $5.63. The stock has gained 5.5% over the past three months through Friday, while the SPDR Health Care Select Sector ETF has tacked on 7.0% and the S&P 500 has advanced 8.3%.
Solar power is no longer confined to daylight hours. Thanks to a wave of investment, solar farms across the US are increasingly being built with industrial-scale battery packs on site so that noontime surpluses can be stored for release in the evening hours when people come home to switch on lights, appliances and air conditioners. Fund managers, power producers, utilities and energy-hungry tech companies are among those making big financial commitments to “solar-plus-storage” projects, introducing a helpful cushion for America’s finely balanced electricity markets and easing the way for a sharp rise in renewable generation.
The best tech stocks to buy and watch are strong price performers with healthy fundamentals, thanks to a new product or service that's driving growth.
Dell Technologies Inc. is close to a deal to sell its RSA cybersecurity business for more than $2 billion to private equity firm STG Partners LLC, according to a report in The Wall Street Journal. Citing people familiar with the matter, the WSJ report said the deal could be announced as early at Tuesday. Dell had acquired RSA when it bought EMC Corp. in 2016 for $60 billion. Dell's stock, which inched up 0.2% in light premarket trading, has lost 4.8% over the past three months, while the S&P 500 has gained 8.3%.
Walmart reported a rise in fourth-quarter net income as the retailing giant issued guidance that didn't meet analyst estimates. Walmart said its fiscal fourth-quarter ending Jan. 31 net income rose 12% to $4.14 billion, or $1.45 a share, as revenue rose 2.1% to $141.67 billion and U.S. comparable-store sales rose 1.9%. Excluding items including unrest in Chile, Walmart said it would've earned $1.38 a share. Analysts polled by FactSet expected earnings of $1.44 on revenue of $142.5 billion. For fiscal 2021, it expects adjusted EPS between $5 and $5.15, sales growth of 3% at constant currencies, and Walmart U.S. comparable store sales growth of 2.5%. Analysts expected earnings of $5.21 for the fiscal 2021 year. Walmart shares over the last 52 weeks have climbed 17.9%.
(Bloomberg) -- Apple Inc.’s shares fell 4.1% in pre-market trading after the company said the fallout from the coronavirus will cause it to miss its sales targets this quarter, sending shockwaves across tech stocks globally.Shares of Apple’s European suppliers fell in early trading, echoing an earlier decline in their Asian counterparts. Europe’s benchmark Stoxx Tech Index fell as much as 1.6% on Tuesday, with Dialog Semiconductor Plc down 6%, AMS AG dropping 5.1% and STMicroelectronics NV falling 4.8%. Equipment makers like ASML Holding NV were also affected by the broader selloff. The shares fell as much as 2.9% in Amsterdam.Mirabaud’s Neil Campling said that Apple’s warning threatens to open the “floodgates” as the virus affects supply chains around the world. The Chinese factories that make the iPhone, Apple’s main revenue generator, are ramping up production slower than expected as they work to contain the virus, which has killed more than 1,800 people in the country. Chinese demand has also been held down as stores closed and customers stayed away, the Cupertino, California-based company said in a statement on Monday.“The semiconductor industry and supply chain is both complex and truly global,” Campling said in emailed comments. “As we navigate through the rest of the quarter, we continue to see a high probability of there being a plethora of downward revisions.”In Asia, Apple suppliers TDK Corp. dropped 4.7% and Murata Manufacturing Co. declined 4.2% in Tokyo. In the U.S., futures on the Nasdaq 100 are down 0.9%.Read more: ‘Nightmare’ for Global Tech: Virus Fallout Is Just BeginningUntil now, tech stocks have been on a tear this year, with the U.S. Nasdaq 100 Index up 10% in 2020. Goldman Sachs Group Inc. analysts said that they see the impact from the virus as a “temporary issue” for Apple, even as they reduced their forecasts for the March and June quarters.Here’s what analysts are saying about Apple’s outlook cut and the impact on the global semiconductor supply chain:ODDO (Stephane Houri)Apple didn’t provide a new forecast for fiscal 2Q20 revenue on Monday and it’s still uncertain -- probably for the company, too -- how much the guidance will be affectedApple is expected to announce a new, cheaper iPhone model this spring, and it’s unclear if delays in China will affect that launchRead-across is negative for companies exposed to Apple, such as AMS, STMicro, Dialog and SoitecGOLDMAN SACHS (Rod Hall)As with every other company operating in China, the situation on the ground continues to evolveWhile the firm reduced Apple forecasts for the March and June quarters, this is a temporary issue for AppleRegarding June quarter, effects are mainly supply-oriented as expected new products like the SE 2 and iPad Pro roll out potentially push out and Apple finds itself without enough inventory more broadlyGoldman has a neutral rating on AppleERSTE GROUP BANK (Daniel Lion)Apple’s warning will not be the last; AMS will be hit as they haven’t factored in any impact from the coronavirus, STMicro should also see some slowdown while NXP won’t be able to avoid an impact, eitherThe issue is the disturbed supply chain, which will impact most producers to some extentHard to say if the impact will be limited to this quarter\--With assistance from William Canny.To contact the reporters on this story: Kit Rees in London at firstname.lastname@example.org;Amy Thomson in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org;Beth Mellor at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Trump administration is considering changing U.S. regulations to allow it to block shipments of chips to Huawei Technologies from companies such as Taiwan's TSMC, the world's largest contract chipmaker, two sources familiar with the matter said. New restrictions on commerce with China's Huawei are among several options to be considered at high-level U.S. meetings this week and next. The measure would be a blow to the world's no. 2 smartphone maker as well as to TSMC, a major producer of chips for Huawei's HiSilicon unit and mobile phone rivals Apple Inc and Qualcomm Inc.