INSUBCONTINENT EXCLUSIVE:
after slowing US factory activity on heels of a dire revenue warning from Apple Inc fueled fears of a global economic slowdown.The magnitude
of Apple's holiday quarter revenue shortfall sent shockwaves through technology sector, which pulled all three major US stock indexes down
The Philadelphia SE Semiconductor index ended session 5.9 per cent lower.Late Wednesday, Apple chief executive Tim Cook wrote in a letter to
investors that company had not foreseen extent of China's economic deceleration, which was exacerbated by US-China trade tensions
The iPhone maker's shares dropped 10.0 per cent.A report from Institute for Supply Management showed U.S
Its PMI reading, while still in expansion territory, hit its lowest level in more than two years."The Chinese slowdown was expected but
today's softer-than-expected ISM number took investors by surprise because U.S
seemed to be only port in storm," said Sam Stovall, chief investment strategist of CFRA Research in New York
"But now it appears that our economic growth is facing trade related headwinds.""Investors are worried that this is an indication that
things could be getting worse from here and Apple is only tip of iceberg," Stovall added.Major automakers reported weak U.S
new car sales in December, with Ford Motor Co and General Motors Co reporting sales falling by 8.8 per cent and 2.7 per cent, respectively
Ford shares fell 1.5 per cent, while GM dropped 4.1 per cent.The Dow Jones Industrial Average fell 660.02 points, or 2.83 percent, to
6,463.50.Of 11 major sectors in SP 500, all but defensive real estate and utilities stocks closed in red.Trade-sensitive industrials also
plans to buy rival Celgene Corp for about $74 billion
The SP 1500 Airlines index sank 5.9 per cent.Yields on 2-year Treasuries dipped below federal funds effective rate for first time since
2008, a move many believe suggests central bank will not be able to continue its monetary tightening policy
The outlook for higher rates has been considered a headwind to equities in recent months.Declining issues outnumbered advancing ones on NYSE
by a 1.39-to-1 ratio; on Nasdaq, a 2.28-to-1 ratio favored decliners.The SP 500 posted no new 52-week highs and 13 new lows; Nasdaq
Composite recorded 6 new highs and 48 new lows.Volume on US exchanges was 8.11 billion shares, compared to 9.16 billion average over last 20
