Are Estimates for Everything Too High? Apple Bad Day Hits Nerve
- S&P 500 sales guidance worsens to levels not seen since 2009
- Optimistic forecasts have kept valuations for 2019 low
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Even in the best of times, Apple Inc. is a formidable bellwether. So when its stock plunges on concerns that reach beyond tech and into every corner of the U.S. economy, investors everywhere gasp.
The iPhone maker just capped its worst seven-day stretch in two years and sent the Nasdaq 100 Index plummeting, dragged down by speculation analysts are too optimistic about next year’s sales. While Tuesday’s bounce steadied nerves, anxiety about the future shows little sign of dissipating as Wall Street frets the high point of the earnings cycle is past.