Old law protecting google and facebook. The coronavirus is taking a toll with tech leading the losses. Apple card revenue guidance for the march quarter with the outbreak continuing to affecting the chain. Impactfulonavirus is but not permanently impactful. T is a temporary blip on the demand side longerterm for apple. We will see a nice rebound when this is over. Apple made a big bet on china. Contained,. Is not this will continue to be a problem. Could be a virus problem longer than the market thanks. Theres no better ceo to handle the challenges then tim cook. Iile it is very concerning think having him at the helm is very reassuring. It is hard to shift production in a matter of weeks. Myly reaction from colleagues to assess what he thinks the supply Chain Disruption will not hurt demand. Since apples announcement the demand it is really supply Chain Disruption. The markets are opening in china but people are being very cautious. There is an effect that will play out over the next
The coronavirus takes a toll with tech leading losses. Earlier, apple cut its revenue guidance for the march quarter with the outbreak continuing to impact the iphone maker supply and demand. The coronavirus is impactful, but not permanently impactful. In other words, it is a temporary blip. On the demand side longer term for apple, i dont see any issues so that gives me a lot of confidence we will see a nice rebound when this is over. The bad news is, apple made a big bet on china. 20 of revenue, a huge part of the supply chain. If the virus isnt contained, this will continue to be a problem. In longerterm, it china and the was a u. S. Are likely to be at loggerheads. I think the virus could be a problem longer market thing. There is no better ceo to handle the current challenges then tim cook and while it is currently concerning, having him at the helm is very reassuring. It is quite hard to shift production in a number of weeks. Emily we got more reaction from the Senior Research an
Lets get straight into some of these burning issues. With me, bloombergs allison, lisa, and jason kelly. Lets start with allison. Investors have debated about how to invest in this years piling debt, given the u. S. Economy is ok. Lets hear what marathons Bruce Richards had to say. Bruce we are starting to see a negative quarter, this past quarter of Earnings Growth being negative, and i think we will see a couple more quarters of that in the early part of 2020. And when earnings go down, that is going to be a very key point for some of these companies that are so over levered when they have lower earnings and meanwhile, have to service this heavy load of debt. Lisa you have been covering the distress we have been seeing. Talk about how much there has been so far this year. So in november, we saw the supply distress debt hit 126 million, the most since august 2016. And really, the highest of this cycle. Historically speaking, that is really not that much in the grand scheme of things c
Lets get to our market reporters. What are we watching . The index watching cryptocurrencies including bitcoin and either. If we look at a chart of the global strength indicator, we can see it flashed a buy signal with the index getting it percent since tuesday. That is good news for crypto fans who have seen crypto come under pressure in the last few months. Your look at bitcoins performance, we can see it rose 277 through june, lost half of we valley since then, but have some analysts coming out and saying 2020 be better for crypto prices. Say bitcoin could rise as much as 10,000 in 2020. That would be quite the rise for bitcoin appeared on the rise this year, the s p 500 up really 29 . Santana clearly visiting stocks this year with the s p 500 climbing that wallow worry. The official santa claus rally pens on january 3. Lets look at a chart that may give some clues. Lets take a look at a threemonth chart of the s p 500 and the dollar. A risk on period with dollar yen and the s p 500
Of december and november was a very strong month for stocks, even though you did see some declines on black friday youre looking at the best returns we saw since june for all of the major averages. Last week again, you did see some big gains too right now the dow, s p and nasdaq are still less than 1 to 2 of the intraday highs with these gains, youll see them challenging that as tom mentioned. Although, i also remember last the first trading day of december last year. Not quite as much fun. I still have some night mares about that. Would not be the only one with scars leftover from that. I think the dow was down 15 at one point in december last year we were having a great year. Markets were up, not up like they are this year. Bottomed on christmas eve, december 24th and saw things take off from there. Its been a very strong year. Will a santa claus rally power the s p 500 and dow to their best year in a generation . Could happen. Were up a lot. What will that take to get there, 5 . Pro