It was a rare warning from Apple Inc., and its stock fell 9 per cent in a day, wiping out about $67 billion in market value. The market believes this to a direct outcome of the US-China trade war, which has been going on for the past few months.
3M, a bellwether company with operations ranging from health-care supplies to consumer electronics to industrial products, generates more than half of its sales outside the U.S. Shares rose 3 per cent to US$199 before regular trading in NY. Microsoft fell 2 percent and Apple shed 0.9 percent.
"Without China growing at a good clip it will be hard for the global economy and the U.S.to continue an expansion", Nauman said.
Monday's stock market declines, following an unusual warning from Apple earlier this month, underline the flip side of such moves for US companies. The problem started when the President of the United States, Donald Trump vowed to fix China's "longtime abuse of the broken global system and unfair practices", during his Presidential campaign.
The trade meeting is just one of several big events that could swing markets in a busy week.
The shares plunged in the fourth quarter amid concern that weaker commodity prices, signs of slowing in China and risks to the European economy posed a threat to demand.
Investors are hoping for encouraging clues that interest rates will remain low enough and job growth strong enough so as to avoid a recession.
The S&P 500 index fell 29 points, or 1.1 per cent, to 2,635. Economic growth in Europe slowed in the last half of 2018 and indicators at the start of this year have been weak.
City of Hamilton hit with another cold weather alert
A brief period of winter weather will be likely tomorrow morning as another frontal system crosses the area. Right now we're calling for a chance of light snow in Denver for the Monday morning commute.
OVERSEAS: The British FTSE lost 0.1 per cent. Germany's DAX fell 0.5 per cent and France's CAC 40 fell 0.78 per cent. Japan's Nikkei 225 stock index fell 0.6 per cent. Hong Kong's Hang Seng was flat, as was South Korea's Kospi. In Asia, Japan's Nikkei 225 index fell 0.6 percent.
In the commodities market, USA crude oil fell 3.2 percent, to settle at $51.99 per barrel in NY.
US crude settled down 3.17 percent at $51.99 per barrel and Brent fell 2.77 percent to settle at $59.93.
Declining issues outnumbered advancers for a 2.09-to-1 ratio on the NYSE and a 2.05-to-1 ratio on the Nasdaq.
The price of oil did not have a big reaction to the Trump administration imposing sanctions Monday on the state-owned oil company of Venezuela. NY time. The Nasdaq 100 Index lost 2 per cent.
The euro rose 0.11 percent to $1.1425 while the Japanese yen strengthened 0.16 percent versus the greenback at 109.36 per dollar.
The world's second-largest economy, which contributes about one-third of global growth, has been weakening for years after averaging more than 10 percent growth for three decades through 2010.
China accounted for between 5% and 10% of its total sales and 10% to 15% of its construction unit's revenue, Caterpillar Chief Financial Officer Andrew Bonfield said during the company's last earnings conference call in October. The euro rose to $1.1427 from $1.1414, and the British pound dipped to $1.3158 from $1.3198.