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Nasdaq Closes at Record High as Apple Issues Revenue Warning

The Nasdaq closes at a record high even after Apple issues a revenue warning because of the coronavirus outbreak in China.
  1. The Nasdaq closed at a record high even after Apple issues a revenue warning because of the coronavirus outbreak in China.
  2. Apple is Real Money's Stock of the Day following the tech giant's warning.
  3. Coronavirus update: Deaths 1,875; confirmed cases 73,451

The Nasdaq closed at a record high Tuesday after Apple  (AAPL) - Get Apple Inc. Report issued a revenue warning because of the coronavirus outbreak in China.

Tesla (TSLA) - Get Tesla Inc Report, T-Mobile US (TMUS) - Get T-Mobile US, Inc. Report and AMD (AMD) - Get Advanced Micro Devices, Inc. Report led the Nasdaq's advance.

The Nasdaq finished up 0.02% to 9,732, while the Dow Jones Industrial Average ended down 165 points, or 0.56%, to 29,322, and the S&P 500 fell 0.29% to 3,370.

Walgreens Boots Alliance (WBA) - Get Walgreens Boots Alliance Inc Report, Apple, and Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. Report led the Dow's decline.

Governments in Asia have taken measures to prop up economic growth amid the outbreak, but Apple's outlook served as a warning those measures might not be enough.

With the death toll from the virus rising to 1,875 and confirmed cases jumping to 73,451, China moved to postpone its biannual auto show, one of the industry’s biggest international events. The nation could also postpone its annual congress, the biggest political meeting of the year.

The standing committee for the National People’s Congress will meet Feb. 24 to deliberate postponing the meeting that is set to begin March 5, according to the Associated Press.

Apple said it wouldn't meet previous guidance for its fiscal second quarter because of the coronavirus outbreak in China, and noted that iPhone shortages would affect its near-term sales.

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Apple said manufacturing sites in China that had been closed by government officials following the coronavirus outbreak were coming back on line, but added it was experiencing "a slower return to normal conditions than we had anticipated."

Apple said iPhone supplies will be constrained temporarily by the outbreak, and said demand in China also would be hit by the spread of the coronavirus and the subsequent store and factory closures.

"As a result, we do not expect to meet the revenue guidance we provided for the March quarter," Apple said in a statement.

The stock was down 1.83% to $319.

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Walmart WMT reported weaker-than-expected fiscal fourth-quarter earnings amid a shorter-than-usual holiday shopping season that ate into both sales and net income, and issued a fiscal 2021 earnings outlook below analysts' estimates.

Walmart posted fourth-quarter adjusted earnings of $1.38 a share, 6 cents below estimates and said it expects 2021 earnings of $5 to $5.15 a share, below Wall Street forecasts of $5.21.

The stock, however, rose 1.5% to $119.63.

DuPont DD announced that former CEO and current Executive Chairman Edward Breen was taking over as CEO again.

Franklin Resources BEN reached an agreement to buy rival asset manager Legg Mason LM for $50 cash per share, or about $4.5 billion.