After a wild swing Thursday with a strong finish, this morning:
President Trump moving to block shipments of semiconductors to Huawei from global chip companies, which could increase tensions with China, according to Reuters
China’s Global Times editor tweets “Based on what I know, if the US further blocks key technology supply to Huawei, China will activate the “unreliable entity list”, restrict or investigate US companies such as Qualcomm (QCOM), Cisco (CSCO) and Apple (AAPL), and suspend the purchase of Boeing (BA) airplanes”
So Apple down $8.
The SEMIS that were strong off of what we thought was BS news yesterday…all down…LRCX down $16, KLAC down $9 and so on. Not so worried about Boeing as who is going to buy Boeing airplanes anyhow…
We suspect the White House will try and roll some of this back as we know they watch every tick in the market and don’t like it when the Dow drops 10 points. Without taking sides, if the U.S. does block shipments, China will surely retaliate. Needless to say, this would not be good news on top of a pandemic. But it is not even 830 am so things could change throughout the day. The DOW moved from trough to peak 850 points yesterday