Stock futures slid Wednesday after U.S.-China relations showed signs of further deterioration, and investors questioned whether Congress will reach an agreement on the next stimulus bill before lawmakers start their summer break.
Futures tied to the S&P 500 ticked down 0.4%. The benchmark index has advanced on each of the past three trading days and stands just 3.8% below its record high after a four-month rally.
Stock futures turned lower after China’s Foreign Ministry said the U.S. had instructed China to close its consulate in Houston. That raises the specter of an escalation in tensions between the governments of the world’s two largest economies, and prompted Beijing to condemn the move as outrageous and unprecedented. Both the yuan and shares in Hong Kong dropped.
“On the face of it, like the scale of the virus, this is a very serious development,” said Richard McGuire, head of rates strategy at Rabobank. “Sentiment has been knocked, but only modestly, given this further escalation of tensions between two of the world’s superpowers.”
My take: Sentiment is as changeable as a baby’s bottom.
The U.S. State Department ordered China to close its Houston consulate. State Department Spokesperson Morgan Ortagus said it was issued "to protect American intellectual property and American's private information." China has threatened to retaliate.
WASHINGTON (Reuters) - The Chinese parent of two companies added to a U.S. economic blacklist over allegations of conducting genetic analyses used to further the repression of China's minority Uighurs has denied wrongdoing.
. . . .
The Commerce Department, which did not immediately respond to a request for comment on Tuesday, said the two BGI units were being added for "conducting genetic analyses used to further the repression of Uighurs and other Muslim minorities."
The companies added to the blacklist Monday include Nanchang O-Film Tech, a supplier for Apple's iPhone, which hosted Apple chief executive Tim Cook in December 2017, according to O-Film's website.
Apple spokesman Josh Rosenstock said Tuesday the company has "found no evidence of any forced labor on Apple production lines and we plan to continue monitoring."
Apple has "worked with O-Film for several years and have regularly conducted detailed audits of their facilities," Rosenstock said, adding "Apple is dedicated to ensuring everyone in our supply chain is treated with dignity and respect."
U.S. Senator Marco Rubio, a Republican, praised the Commerce Department's designations "to ensure that U.S. technology does not aid the Chinese Communist Party’s crimes against humanity and egregious human rights abuses against Uighurs and other minorities in Xinjiang, including the forced collection of DNA."
I have a family member who manages the investments for an ultra-high net worth person. Ten-figure net worth. I consider him a very well trained and sophisticated investor. His bonuses depend on outperforming the market, and he is doing very well. Not afraid to make some bold calls. His boss is very into energy/oil and gas, and years ago, he was convinced to get out by my family member.
Historically his boss has shied away from tech investments. But he was convinced to invest in Microsoft and Apple in 2019 by my family member. Paid $220 for Apple. I know the boss very well, and he has always kind of scoffed at my Apple investment. Recently he is second-guessing and thinking he should perhaps sell. My family member is resisting and telling him to hold.
A couple of days ago, at a family event I was commenting about how well Apple is doing in this pandemic, and whether that performance made any sense. His macro perspective was interesting. His main point is that there is a lot of liquidity that has had their investing alternatives dramatically reduced due to this investment climate. He specifically mentioned capital-intensive businesses like oil and gas. Where historically his boss has made a bunch of money. This money cannot sit on the sidelines. So it is searching for highly liquid investments where a lot of money can be put to work. Apple (and Microsoft to a somewhat lesser degree), in my family-members opinion is an ideal home for this money. He would like to see Apple increase the dividend, but beyond that he thinks it is the ideal investment in this climate.
So net net, he is not spooked or concerned about Apple's recent price appreciation. He is prepared to ride out any swings that could be coming.
Last Edit: Jul 22, 2020 14:48:57 GMT -5 by Lstream
Any decent lawyer would have would have protected Apple's interest by ensuring that all relevant license terms and obligations survive any change of control or sale of business. And Apple's lawyers are way beyond decent. I would also bet that all the relevant IP is in escrow and will accrue to Apple under various worse case conditions. Softbank might have a "mess" in ever getting their money back, but I don't see any issue getting in the way of Apple's plans.
mercel: It's been a long strange trip - good to see you're still around (and in AAPL -my assumption).
May 10, 2019 12:48:32 GMT -5
Zeke: Long time no see. Nice to see familiar names still here.
Mar 25, 2019 14:42:52 GMT -5
sponge: Regarding the future of VR, I think it will be huge. I was a gamer when I was in college. But as an adult I lost interest. Last fall I flew up to visit my son at college and check out his new Vive set up. After playing with it for the weekend, I was
Apr 29, 2018 15:25:17 GMT -5
galleybob: thanks for your answer. I will copy and send to her
Nov 7, 2017 15:32:18 GMT -5
rickag: So since Jan 28th 2015 AAPL is up from 117.27 to 157.21
Aug 21, 2017 20:09:43 GMT -5
artman1033: VXAPL = 29.21 AAPL = $117.27 AFTER EARNINGS
Jan 28, 2015 14:54:46 GMT -5
artman1033: VXAPL = 44.94 AAPL = $110.39 BEFORE EARNINGS
Jan 27, 2015 11:12:53 GMT -5