There are few corporations that can rile the markets like Apple, but extremely weak pre-release financials were released by Apple for fiscal 1st quarter which just ended December 29th. The problem is a relatively mammoth revenue shortfall almost entirely due to weak sales in China and a few other emerging markets. The revenue shortfall is in the area of $10 billion (around $84 billion versus estimates of $94 billion).
This strong reinforcement of what was already believed to be a weak Chinese economy could well set off a bit of a panic tomorrow morning as investors overreact (or is it an overreaction?).
Of course there is nothing we can do to react to this type of news–nor would we ever react quickly to this type of news–bad decisions are made in situations like this one.
Tonight the future markets are off over 300 points (at 10 pm central) and we would be very surprised if markets fall by only this amount.
Hold on for a ride Thursday!!