Stocks - Nasdaq Ekes out Gain as Apple Cuts Some Losses on Bets of Rebound
Investing.com – The Nasdaq eked out a gain Tuesday after Apple (NASDAQ:AAPL) clawed back some losses as investors bet that the Covid-19 impact on the tech giant's revenue will be temporary.
The S&P 500 fell 0.29%, the Nasdaq Composite rose 0.02% and the Dow Jones Industrial Average lost 0.56%.
"We assume that, as with every other company operating in China, the situation on the ground continues to evolve for Apple). We are reducing our forecasts for both the March and June quarters but we see this as a temporary issue for Apple (NASDAQ:AAPL)," Goldman Sachs said in a note after the company warned on revenue.
Apple said it would miss its fiscal second-quarter revenue guidance amid a coronavirus hit to iPhone demand and production. Its shares closed 1.8% down after falling by more than 3% intraday.
Still, the warning on revenue sent shockwaves across the supply chain, with chip stocks in particular showing weakness. Lam Research (NASDAQ:LRCX) dropped 4% and Taiwan Semiconductor Manufacturing (NYSE:TSM) fell 3.5%.
Downside in the broader market, however, was kept in check by positive quarterly earnings.
Walmart (NYSE:WMT) climbed 1.5% after shrugging off weaker-than-expected fourth-quarter results, which it blamed on a softer-than-expected performance over the holidays.
Advance Auto Parts (NYSE:AAP) reported earnings that topped consensus estimates, sending its share about 6% higher.
Kroger (NYSE:KR), meanwhile, surged 5% after Warren Buffett invested $549 million in for a 2.4% stake in the company.
Energy stocks fell 0.8%, pressured by early weakness in oil prices amid fears about the virus' impact on Chinese oil demand.
"Driving crude oil markets over the short term are discussions between OPEC and Russia about further curtailments in light of this demand," said Tortoise Managing Director Brian Kessens.