Stock Market News: Apple, Google, Avid Technology

Stock Market News: Apple, Google, Avid Technology
market news

The stock markets in the United States declined today primarily to investors’ concern regarding China’s currency devaluation, a sign that the country’s economy is probably diving deeper.

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In an interview with Bloomberg, Tom Wright, director of equities at JMP Securities commented, “The driving forces today continue to be macro-oriented with China the most important. We spend a lot of time obsessing over Greece or Puerto Rico, but China is a much bigger economy and a much bigger problem to the global economy and devaluing the currency is shaking people up.”

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The central bank of China reduced its daily reference rate by 1.9%. As a result, the yuan suffered the biggest one-day drop since China ended the dual-currency systems in January 1994.

The People’s Bank of China explained that its action was a one-time adjustment intended to be more aligned with supply and demand. The surprising move also had a negative impact on other equity markets around the world. Investors selloff their positions in emerging-market currencies, commodities, auto and luxury stocks with exposure to China.


The futures trading data compiled by Bloomberg showed that the probability rate of an interest rate increase by the Federal Reserve dropped from 54% to 46%.

Today, the U.S. Department of Labor reported that the worker’s productivity per hour increased 1.3% from April to June, lower than the 1.6% expected bu economists polled by Bloomberg.

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 17,402.84 (-1.21%)
  • S&P 500- 2,084.07 (-0.96%)
  • NASDAQ- 5,036.79 (-1.27%)
  • Russell 2000- 1,221.14(-0.94%)

European Markets

  • EURO STOXX 50 Price EUR- 3,605.28 (-1.90%)
  • FTSE 100 Index- 6,664.54 (-1.06%)
  • Deutsche Borse AG German Stock Index DAX- 11,293.65 (-2.68%)

Asia-Pacific Markets

  • Nikkei 225- 20,720.75 (+0.42%)
  • Hong Kong Hang Seng Index- 24,498.21 (-0.09%)
  • Shanghai Shenzhen CSI 300 Index- 4,066.67 (-0.43%)

Stocks in Focus

The stock price of Apple declined more than 5% to $113.49 per share. The iPhone maker is one of the companies with exposure to China that were negatively impacted by the yuan devaluation. Separately, a report indicated that China’s smartphone manufacturer is becoming increasingly popular, and it might become an iPhone killer.

The shares of Google climbed more than 4% today. The Class A shares (GOOGL) of Google closed $690.30 while the Class C shares (GOOG) closed $660.78. Yesterday, the search engine giant announced the establishment of a new public holding company called Alphabet, which will become Google’s parent company. Stifel analyst Scott Devitt upgraded his stock rating on Google to Buy with a price target of $850 per share.

Avid Technology plummeted almost 29% to $8.54 per share. The digital media company reported disappointing earnings for the second quarter. Avid Technology reported earnings of $0.05 per share, significantly lower than the $0.20 per share expected by analysts. Its revenue declined 12% to $112 million, lower than the $125 million consensus estimate.


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