|Day's Range||75.45 - 75.45|
Aug.23 -- Gene Munster, Loup Ventures managing partner, and Bloomberg's Ian King discuss the impact of the escalating China-U.S. trade war on the tech industry. They speak with Bloomberg's Emily Chang on "Bloomberg Technology."
President Trump raised China tariffs late Friday, as the China trade war spirals. The Dow Jones dipped after plunging in Friday's session. So did Apple, AMD, Tesla and Nike.
Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.
Traditional pay-TV services are shedding subscribers because video streaming is more convenient, offers more choice, and, at least for now, a better value. As Netflix (ticker: NFLX), Apple (AAPL), (DIS) (DIS), (CMCSA)(CMCSA), and other heavyweights battle it out, the best way to play streaming is turning out to be upstart (ROKU) (ROKU). The company’s combination of hardware and software enables consumers to watch content streamed over the internet.
In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.
There was a time when the Bay Area felt it had a lock on tech talent. Now some of the Bay Area’s most promising companies are finding themselves heavily courted by cities and states eager to lure the high-paying jobs and growth aura that these companies can bring with them. The huge incentive package spurred speculation that the company could one day move its headquarters to the Texas city, which Uber denied.
Shares of Apple and Silicon Valley's semiconductor companies were pummeled on Friday as President Trump responded to new tariffs from China with a tweet saying he's demanding that American companies "immediately start looking for an alternative to China."
(Bloomberg) -- Qualcomm Inc. won’t have to renegotiate its patent licenses while appealing an antitrust ruling won by the U.S. Federal Trade Commission, a federal appeals court ruled.Qualcomm has raised “serious questions” about the merits of the trial court’s ruling, a panel of the U.S. Court of Appeals for the Ninth Circuit said Friday in an order putting the May 21 decision on hold.Forcing the chipmaker to enter into new contracts imposes changes that “cannot be easily undone should Qualcomm prevail on appeal,” the three-judge panel in San Francisco said in a seven-page order that was unusually detailed. There’s no guarantee the three judges who considered Qualcomm’s request will be on the panel hearing the appeal in JanuaryU.S. District Judge Lucy Koh found in May that Qualcomm’s “no license, no chips” policy unfairly leveraged the company’s market position to force customers to pay inflated prices for chips and royalties for their technology. She ordered the company to end the policy and renegotiate some of its contracts.Read More: Judge’s Conundrum: Is Qualcomm a Monopolist, or Merely a Bully?Qualcomm has argued that Koh’s order would undermine its entire business. Under the original ruling, the company would be forced to renegotiate patent-licensing contracts with phone makers, a process that could slash its largest source of profit. It would create binding arrangements that wouldn’t be reversed, even if Qualcomm got the ruling overturned on appeal.The San Diego-based chipmaker is unusual in the chip industry because it gets the majority of its profit from fees on patents that cover the fundamentals of how modern phone systems work. Apple Inc., Samsung Electronics Co. and all of the world’s biggest phone makers have to pay whether or not they use its chips. That arrangement has caused intense legal fights and regulatory scrutiny around the world for Qualcomm.The case has split the U.S. government, especially the two agencies charged with antitrust matters. While the FTC -- an independent agency -- argued that Qualcomm harmed competition, the U.S. Justice Department said Koh’s ruling harmed consumers.Qualcomm also got the backing of other areas of the Trump administration, as both the Defense Department and Department of Energy said the order threatens national security and America’s lead role in 5G, the next-generation of wireless technology that promises to transform everything from robotic surgery to autonomous vehicles.“Whether the district court’s order and injunction represent a trailblazing application of the antitrust laws, or instead an improper excursion beyond the outer limits of the Sherman Act, is a matter for another day,” the appeals panel said, referring to the federal antitrust law.The language of the ruling has improved Qualcomm’s chance of winning the appeal or reaching a settlement with the agency, said Jennifer Rie, an analyst with Bloomberg Intelligence.Ankur Kapoor, an antitrust lawyer with Constantine Cannon in New York who’s not involved in the case, said the panel’s detailed ruling may be an attempt to “explain their thinking” in a case with high stakes for the company. He said the court wanted to maintain the status quo, especially considering the potential impact to Qualcomm’s long-term business and the fact that the appeal is being expedited, with a decision expected shortly after January arguments.In some ways, Qualcomm’s licensing program “appears significantly impaired regardless” because of the legal strains on the company and the slowdown in the “horrendous” chip market, said Stacy Rasgon, an analyst with Bernstein Research.FTC ‘Disappointed’FTC Bureau of Competition Director Bruce Hoffman said he was disappointed in the court’s ruling and noted that only part of the court’s ruling was put on hold. Qualcomm still can’t enter into exclusive deals on modem chips, can’t interfere with any customer’s ability to communicate with government agencies and must submit to monitoring, which the FTC said promotes competition. Qualcomm didn’t ask the appeals court to put those aspects on hold.“The Bureau of Competition will monitor Qualcomm’s conduct relating to the on-going injunctive provisions, and we stand ready to evaluate any information from industry participants relating to whether Qualcomm is complying with its obligations,” Hoffman said.The court order previews some of the arguments that Qualcomm is expected to make when it files its written arguments with the Ninth Circuit later Friday. Qualcomm will argue that Koh stretched the definition of antitrust rules under U.S. law and ignored evidence that showed there was competition.Koh had no right to decide that Qualcomm’s rates were unreasonable, order the company to give licenses to its competitors or decide whether or not it has to supply chips to handset makers, the San Diego-based company contends.The case is Federal Trade Commission v. Qualcomm, 17-220, U.S. Court of Appeals for the 9th Circuit (San Francisco).To contact the reporters on this story: Susan Decker in Washington at firstname.lastname@example.org;Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Jon Morgan at firstname.lastname@example.org, Peter Blumberg, Steve StrothFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investors waiting on encouraging comments from leaders such as Fed Chairman Jerome Powell and President Donald Trump did not get what they were hoping for Friday.Source: Shutterstock Stocks tumbled after President Trump took to Twitter (NASDAQ:TWTR) to -- you guessed it -- deride China AND the Fed. As I noted on Thursday, Powell's comments from the Jackson Hole economic conference today took on added importance after the FOMC minutes out earlier this week indicated the July rate cut doesn't mean more are coming. A pair of Fed governors affirmed that notion Thursday.Put simply, Powell's Wyoming remarks weren't dovish enough for the president or markets as evidenced by Friday's tumble. Trump pondered on Twitter "My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?"InvestorPlace - Stock Market News, Stock Advice & Trading TipsSpeaking of China, the world's second-largest economy is promising new tariffs on U.S. goods, an overture to which Trump had plenty to say."The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP," said the president on Twitter. "Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing .your companies HOME and making your products in the USA. I will be responding to China's Tariffs this afternoon. This is a GREAT opportunity for the United States. Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop - it didn't. Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!"All of that conjecture gets us to a glum end of the week with Nasdaq Composite sinking 3% while the S&P 500 lost 2.59%. The Dow Jones Industrial Average slid 2.37%. In late trading, just one Dow stock was in the green: Boeing (NYSE:BA). Too Many Losers on the DowIn late trading, 19 of the 29 Dow offenders were lower by 2% or more, underscoring just how bad of day it was for equities. Among those losers were plenty of tariff-sensitive names, including Apple (NASDAQ:AAPL), which was the worst performer in the Dow today with a loss of 4.62%.In other news, it's hard to get excited about a stock like Nike (NYSE:NKE) on a day when trade tensions surge and Foot Locker (NYSE:FL) plunges on bad earnings. Shares of Nike reflected as much with a Friday slide of 3.33%, but at least one analyst defended the athletic apparel giant. Guggenheim named Nike to its "best ideas" list today.The research firm said "the company is positioned well to maneuver through tariff risks, and that Nike's latest earnings and robust product pipeline were impressive. Also of note, Nike has joined 31 other major retailers in signing a pact for better environmental efforts, which will be presented at this weekend's Group of Seven (G-7) summit," according to Schaeffer's Investment Research.In the search for good news today, one that was difficult as it pertains to members of the Dow Jones Industrial Average, another tidbit I have to offer up is Betsy Graseck, global head of banks and diversified finance research at Morgan Stanley, making some bullish comments on Dow components American Express (NYSE:AXP) and JPMorgan Chase (NYSE:JPM) in an interview with Barron's.Graseck highlighted JPM's big buybacks as earnings booster and the ability of American Express to weather a recession thanks to its more affluent clientele.In other glum news, oil prices traded lower and already-struggling shares of Exxon Mobil (NYSE:XOM) were hit wit a downward price target revision with UBS paring its forecast on the stock to $75 from $87. That new target still implies some decent upside from today's close for the largest domestic oil company. Bottom Line on Dow Jones TodayI don't like sounding alarm bells, but the president's comments directed toward China today are very hard to retract. To be fair, he's on point when it comes to the fentanyl issue, but ordering U.S. companies to stop manufacturing in China is a gambit that will not bear fruit anytime soon.This trade war, now reaching new, ominous heights, is likely to stoke recession speculation. The only good news there is that the Fed will likely attempt intervention via rate cuts.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Dow Jones Today: Hello Darkness, My Old Friend appeared first on InvestorPlace.
Shares of Apple Inc. dove 4.6% on Friday after President Donald Trump said he's ordering U.S. companies to start looking for "an alternative to China." Trump's pronouncement, which sent the Dow down more than 600 points, came after Beijing announced retaliatory tariffs on imports of U.S. goods. Apple gleans 18.3% of its total revenue from mainland China, second only to the U.S.'s 36.9%, according to FactSet. Nearly all of the company's flagship iPhones are built in China, creating economic and political tension between Trump and Apple CEO Tim Cook, who strongly opposes tariffs against China. Wedbush Securities analyst Daniel Ives referred to Friday's selloff as "a gut punch to Cupertino." Apple is headquartered in Cupertino, Calif. Apple shares are up 28% this year.
DOW UPDATE The Dow Jones Industrial Average is slumping Friday afternoon with shares of Apple Inc. and Intel facing the biggest losses for the index. The Dow (DJIA) was most recently trading 582 points (2.
Leading the Apple (NASDAQ:AAPL) rumor mill today is news of a new feature for Music subscribers. Today, we'll look at that and other Apple Rumors for Friday.Source: View Apart / Shutterstock.com New Music Daily: Apple Music is getting a new playlist with "New Music Daily", reports 9to5Mac. This is a new playlists from the company that will provide subscribers with a unique list of music to listen to every day. New Music Daily is actually serving as a replacement for the "Best of the Week" playlist. This playlist was updated every week on Friday. With the new playlist changing daily, it makes the old playlists obsolete.HomePod Launch: Apple fans in Japan and Taiwan can now purchase the HomePod, MacRumors notes. This comes after the company was allowing customers to preorder the device ahead of its launch. While the HomePod may not be the best performing product for the tech company, AAPL still appears dedicated to growing its user base.InvestorPlace - Stock Market News, Stock Advice & Trading TipsiCloud Beta: A new web portal for iCloud is in beta testing, reports AppleInsider. This web portal allows users to access and manage their data in iCloud. The new beta introduces a few aesthetic changes, as well as a new app. That new app is Reminders, which will be coming to mobile devices when iOS 13 launches. Not all of the features present in the mobile version of Reminders is available in web version.Subscribe to Apple Rumors As of this writing, William White did not hold a position in any of the aforementioned securities.The post Friday Apple Rumors: 'New Music Daily' Comes to Apple Music appeared first on InvestorPlace.
Stocks fell sharply across the board after President Donald Trump said U.S. companies are ‘hereby ordered’ to look for alternatives to China. Technology companies were among the worst hit.
Investing.com – Stocks tumbled Friday as the U.S.-China trade dispute intensified and President Donald Trump announced he was ordering U.S. companies with China facilities to move them somewhere else.
DOW UPDATE The Dow Jones Industrial Average is seeing a selloff Friday afternoon with shares of Apple Inc. and American Express facing the biggest setback for the price-weighted average. Shares of Apple Inc.
Apple is 'aggressively' looking to shift its supply chain away from China as a result of the trade tensions, according to an analyst.
DOW UPDATE The Dow Jones Industrial Average is in a selloff Friday morning with shares of Apple Inc. and 3M facing the biggest declines for the index. Shares of Apple Inc. (AAPL) and 3M (MMM) are contributing to the index's intraday decline, as the Dow (DJIA) was most recently trading 441 points (1.
(Bloomberg) -- Semiconductor companies and Apple Inc. fell sharply on Friday, as the trade war between the U.S. and China continued to escalate.China’s Ministry of Finance said the country plans to levy retaliatory tariffs on another $75 billion of U.S. goods, pressuring the securities in pre-market trading. Their losses were extended following the open, after President Donald Trump subsequently said that he would announce his response Friday afternoon.Apple fell as much as 3.9%. The iPhone maker is heavily correlated to trade issues because China is both a major part of its supply chain and a notable market for its products. The company derived nearly 20% of its 2018 revenue from China, according to data compiled by Bloomberg.Chipmakers have been similarly volatile because of the trade war. The Philadelphia Semiconductor Index dropped 3.6% on Friday, and every member of the benchmark industry index was in negative territory.Among notable decliners, Qualcomm Inc. lost 3.3% while Nvidia Corp. was off 5% and Micron Technology shed 3.5%. Broadcom Inc. was down 4.9% and ON Semiconductor Corp. lost 5.4%.Technology stocks were the weakest-performing sector on Friday, with the S&P 500 information technology index down 2.4%. The S&P 500 overall fell 1.4%.(Adds Trump’s response in second paragraph, updates prices to market open)To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editor responsible for this story: Catherine Larkin at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
President Donald Trump said on Friday he was ordering U.S. companies to look at ways to close their operations in China and make more of their products in the United States instead, sending U.S. markets down sharply in a new rhetorical strike at Beijing as trade tensions mounted. Trump cannot legally compel U.S. companies to abandon China immediately.
Costco Wholesale (NASDAQ:COST) is the best retail stock besides Amazon (NASDAQ:AMZN). The shares are up almost 22% in the last year, 82% over the last two years and 130% over the last five. It delivers a small, but steady dividend that has doubled over the last five years.Source: Helen89 / Shutterstock.com Costco's reputation as the best place to buy goods in bulk is reflected in its financial statements, where net income usually comes close to the amount it generates in membership fees. The stores are usually running at break-even.I have owned Costco shares, but sold them a few years ago, thinking they were overpriced. I worried that Costco was running out of places to grow, as young people moved into small city apartments the company doesn't serve.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI was wrong. So far in 2019 Costco shareholders have done better than those at Walmart (NYSE:WMT) or even Amazon. Communist? Or Conservative?Costco is unique among retailers not just in that it pays its line employees well, but in that it doesn't overpay managers. Employees are thus more satisfied with their pay and working conditions at Costco than employees at any other company -- even those at Apple (NASDAQ:AAPL).But Costco is also conservative, in the best possible way. It can cost as much as $100 million to outfit a new store, so it usually rolls out just one or two each month. Its stores are all located in upper-middle class suburbs, with ample parking, gas stations and tire centers. It is the last great suburban success story. Unlike Walmart, it doesn't suck up the whole retail market, it just skims the cream off its top. * 7 Retail Stocks to Buy on the Dip Costco has no secrets. Management admits its focus is on customers and employees, not just shareholders. Its stock is limited to a few items in each category, and its markups average just 15%, against 25-50% markups from other retailers. The company's Kirkland store brand often offers better quality than the national brands it competes with. Costco was late to online shopping, but its app is already considered better than that of Walmart's Sam's Club.During the era of President Donald Trump, which has benefitted upper-income suburbanites most, Costco's growth has accelerated. Sales for the first three quarters of 2019 are up 6.5% overall, and online sales are up almost 25%. During the current fiscal year, it has paid back over one-quarter of its long-term debt, nearly $1.7 billion, despite super-low interest rates. Can Costco Stock Continue?There are indications that finally, Costco is running out of growth. Neighborhoods and local governments are fighting new stores in some wealthy neighborhoods.Costco's profits accelerated after it switched from using an American Express (NYSE:AXP) to a Citicorp (NYSE:C) by Visa (NYSE:V) card, as did benefits to cardholders. But that's a trick that is hard to repeat.Costco is growing internationally and opened its first store in Shanghai this month. Currently 68% of its stores are in the U.S., but that will change as it rolls out executive memberships in South Korea, Japan and Taiwan.Costco's growth has been decelerating slowly in 2019, into the mid-single digits each month, as its fiscal 2018 revenue came to $141 billion. The Bottom Line on COST StockCostco stock is an investment, not a trade. Costco is managed conservatively for the long run. Even if the stores look cookie-cutter, they don't open until after years of careful planning. Risks are growing. A higher international profile means there are now currency risks, trade risks and social dislocation risks. Even Walmart has had its misadventures in growing globally.But, as I said at the outset, I was a fool to sell my shares. Hang on to yours.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear , available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN and AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Investors Can Only Hope to Contain Costco Wholesale Stock appeared first on InvestorPlace.