Does Apple’s Stock Dive Spell Trouble for the U.S. Economy?

Yesterday, Apple sent the already wobbly stock market tumbling after lowering its earnings expectations for the first quarter of 2019. As of writing, Apple’s stock was on pace for its largest single-day decline in 6 years. Since Apple is the world’s largest company by market cap — and this was the first time in over 15 years that the company slashed a quarterly earnings forecast — it behooves us to dive into CEO Tim Cook’s letter to investors to see what gives. Here is a summary of what Cook wrote: While we anticipated some challenges in key emerging markets, we

This Week in Economics: 4 Stories You Should Know About

1.) Trump’s FCC Shoots Down California’s “Texting Tax” Proposal. This week, overzealous California regulators saw their hopes of enacting a “Texting Tax” squashed by President Trump’s FCC. The FCC issued a declaratory ruling which found that “text messaging” is an information service, thereby limiting the state’s authority to regulate. Prior to the FCC’s announcement, California regulators were set to vote on an initiative that would have imposed a tax on consumers’ phone bills in order to fund additional government services. California residents should be grateful the FCC saved them from their bloated state governments’ latest tax-and-spend scheme. 2.) Republicans to

This Week in Economics: 4 Stories You Should Know About

1.) The Incredible Stock Market Run Continues Today, US stockholders should raise their glasses to toast the longest bull run in American history. USA Today reports: The long, upward rise in U.S. stock prices that began in March 2009 near the end of the Great Recession — a rally that survived countless scares and was doubted every step of the way by market skeptics — is about to surpass the famed surge from the 1990s as the longest-running bull in Wall Street history….The main drivers pushing share prices even higher, market experts say, are a U.S. economy powering along at

What’s Going On with the Stock Market — And Can Trump Fix It?

Yesterday, the Dow Jones Industrial Average suffered its largest single-day point decline in history after tumbling 1,175 points. Compounding concerns, this sell-off occurred immediately after another large sell-off the previous trading day (Friday) where the Dow shed 666 points. Although the forces behind these changes are, of course, complex, here are the cliff notes on what is driving this market correction. As USA Today reported, “Fears of spiking inflation and borrowing costs caused investors to rethink their bullish views on stocks, which until just last week had fueled huge gains in the blue-chip Dow… [The market] fears and worries that