The latest news in the tech world is causing a stir as iPhone sales in China have taken a significant hit, down 24% in the first six weeks of 2024. According to a report by Counterpoint Research, Apple is facing tough competition from local smartphone firms like Huawei, Oppo, Vivo, and Xiaomi, as well as Samsung. This decline in sales has led to a nearly 2.5% drop in Apple’s shares early Tuesday.
On the other hand, Nvidia, another top stock to watch, is rallying ahead of CEO Jensen Huang’s speech at the company’s GTC Conference. Shares are up 1%, showing positive momentum for the company. However, Super Micro Computer’s recent surge, up 18% on news of its addition to the S&P 500, has raised concerns about froth in the chip industry. Shares are down 3.5% in premarket trading.
Advanced Micro Devices is also facing challenges with its AI chip designed for China to meet U.S. government trade restrictions. Bloomberg News reported that the government’s determination will hurt AMD’s quarter. In contrast, Nvidia has already started shipping China-specific AI chips to customers for sampling.
Alphabet, Google’s parent company, is under pressure due to its Gemini AI image generator stumble. The stock is down 1% early Tuesday, adding to its recent decline over the past eight sessions. This, along with declines in Apple, is putting added pressure on the tech-heavy Nasdaq.
As Wall Street remains lower one day after modest losses for the Dow, the S&P 500, and the Nasdaq, investors are keeping an eye on Fed Chairman Jerome Powell’s testimony on Capitol Hill and the government’s February jobs report later this week. Three Club names are set to report this week, including Foot Locker, Broadcom, and Costco.
Despite challenges, Target shares have surged 9% despite light guidance, with the retailer reporting better-than-expected earnings and revenue. Target also addressed issues with theft and controversy over its merchandise collection for Pride Month.
In other news, Coterra Energy is a stock to watch after CEO Tom Jorden discussed the company’s flexibility in adjusting oil and natural gas production based on pricing. Oil has been strong recently, while natural gas has been weak, showcasing the company’s ability to adapt to market conditions.
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