Apple Warns Due to Coronavirus; Futures Slump

As the death toll mounts in China, so does the deleterious affects of a complete shut down of China on the global economy. The first big warning comes from China tonight, pointing to a somewhat modest 5% reduction in revenue expectations. Frankly, and this goes without saying, not much to concern yourselves with — if I don’t say so myself.

• Apple said Monday it does not expect to meet its second-quarter forecast for revenue.
• The company cited global supply constraints for iPhones and lower Chinese demand as a result of the coronavirus outbreak.
• Apple said in late January that it expected revenue of $63 billion to $67 billion in its fiscal second quarter.
• As soon as the Chinese get over this seasonal flu of sort, naturally everyone will shoot out from their 100sq ft apartments and into the Apple stores to buy more wares. Clearly this is a temporary phenomena and we should price in the eventual normalization of business, as soon as possible. Dare I say, Nasdaq futures being down 50 now is 100 Nasdaqs too cheap?

I don’t know what the fuss is about anyway. China has been smacked with trade wars and other Trumpion maladies for the past 3 years. Surely they’re not gonna let a little cold get in the way of their pre-determined +6.3% GDP. Will they?