Dow Dives After Apple Warns of China Slowdown
CABRERA: AT THIS HOUR, the Dow is sinking more than 300 points after Apple warned of a slowdown in China. Let's get to Alison Kosik. She's at the New York Stock Exchange. Fill us in, Alison.</s>ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Ana, Apple becoming a poster child to what is worrying Wall Street. I'm talking about a slowdown in the Chinese economy and the impact of the U.S.-China trade situation that remains unresolved, the impact on the multinational companies. After the bell yesterday, CEO Tim Cook, of Apple, put out a bombshell warning saying that the company was going to miss, a big miss, on earnings that come out later this month in the billions of dollars. Apple hasn't put out this kind of miss in years and years. This is clearly shocking Wall Street, sending the stock down 9 percent, if not more, shaving 100 points because of how heavily weighted Apple shares are in the Dow. We are seeing the ripple effect throughout the tech industry and throughout other stocks as well. Because it's not just going to be Apple that will be in this situation. Other companies will feel the impact of the slowing Chinese economy and of the U.S.-China trade impact, things that Cook had blamed for this huge earnings miss. We could see companies, everything from Ford to G.M. to Volkswagen to Starbucks, really get hit by these two things, the slowdown of the economy and the tariff impact. It speaks to how vital China is in the global trade picture that when you see a slowdown happen in China, how it affects all these multinational companies -- Ana?</s>CABRERA: Alison, are you saying we should expect the Dow to keep dropping in the days ahead?</s>KOSIK: It very well could. Earnings season is in about three weeks and you can expect more volatility until investors hear from CEOs. One thing to remember, the last earnings season, more than a third of S&P 500 companies had at least talked about or were concerned about tariffs and the uncertainty of the U.S-China trade situation. That was just talk. Now we will see, fast forward to January, this month, as a new earnings season. Investors are going to be looking for the impact, impacts which we are now seeing with Apple -- Ana?</s>CABRERA: Alison Kosik for us, at the New York Stock Exchange, thank you. Very soon, the Democrats will take control of the House of Representatives. Stay with us. You are live on CNN.