Stock futures tumble on fresh fears over China

“Stock futures were setting up for heavy declines on Tuesday on fresh fears over the health of China’s economy,” Keris Alison Lahiff reports for TheStreet.

“The Chinese economy looked to be in even worse shape after new data that showed its manufacturing sector contracting,” Lahiff reports. “China’s official Purchasing Managers’ Index slid to 49.7 in August, down from 50 in July, its worst reading in three years. Separately, the Caixin China manufacturing PMI fell to its lowest level since March 2009, down to 47.3 in August. China’s Shanghai Composite fell more than 1%.”

“Head of the International Monetary Fund, Christine Lagarde, has warned emerging economies to prepare for the slowdown in the world’s second-largest economy. Lagarde also warned global growth could be weaker than the IMF’s forecast two months ago,” Lahiff reports. “High-momentum tech companies were selling off in premarket trading. Tesla and Netflix fell more than 3%, Apple was down nearly 2%, and Google slid 2.3%. ”

Read more in the full article here.

MacDailyNews Take: Yuck. Somehow we doubt there’s another email to Cramer in the offing. Hopefully, AAPL will be a bit more resilient going forward.


  1. The good news is that Apple is in an incredibly strong financial position. Apple’s sales also tend to be resilient in the face of economic crises, as evidenced by the 2007-2009 Great Recession in the U.S. In times of crisis, people tend to value quality even more than in times of plenty. In addition, Apple has a proactive, long term mindset that seeks opportunities to improve its labor force, expand its markets, and grow its investments in R&D even as its competitors seek to cut costs and shed employees. As a result, Apple emerges from economic crises even stronger than before.

  2. Ok, for all those math wizards on Wall Street. If China is 26% of Apple’s sales and China is SLOWING DOWN not shrinking. Today’s closing $107.72 is about 20% less than the $134.54. (And that is without backing out the boat loads of cash!) So, do you think know one in China will ever buy an Apple product again?

    Clueless idiots! The people of China will buy more Apple devices so others will see that they are at the top of the food chain. They may not pony up for a high end car that the people in the office will not see. But, the will see what they are carrying or wearing.

    Again, very clueless idiots!

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