US Equities: Apple's dovish forward guidance; U.S. Colleges $700 Million at risk

Major US equity indices continued lower as protectionist policies intensified and spread all over the US economy, and no longer limited to airlines as negative consequences are expected on Higher Education and the US food industry.  

At the time of reporting, the Dow Jones Industrial Average fell over (107.04)-points to 19,864.09, while the broader S&P 500 Index was down nearly (2.03)-points to 2,278.87. Meanwhile, tech-heavy Nasdaq Composite Index gained +1.07-points to 5,614.79.

Protectionism a lose-lose narrative 
Bloomberg reports, "U.S. colleges stand to lose as much as $700 million in annual revenue if Trump’s ban on visitors from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen becomes permanent, according to estimates by College Factual, a higher education research website. University presidents fear the policy could imperil the U.S.'s standing as the top destination for the world's smartest students. In addition to hurting university bottom lines, disrupting the talent pipeline in such a way could curb economic growth, they said."

The report continues, "Trump's executive order, issued on Friday, bars most citizens of the seven countries from visiting the U.S. for at least the next three months. Northeastern University, Texas A&M University, Pennsylvania State University, and the University of Southern California—each of which enroll more students from those seven nations than any other school in the U.S.—could each lose at least $10 million a year, according to College Factual."

Apple earnings on fire; record revenue
Anita Balakrishnan, reporter at CNBC News, noted, "Apple has returned to growth, but its future is less certain than analysts thought. The iPhone maker reported quarterly earnings and revenue that easily beat analysts' expectations on Tuesday, but gave future guidance on the lower end of expectations."

She further writes, "Apple said on Tuesday it expects revenue of $51.5 billion to $53.5 billion, on the lower end of the expected range, though it is still above the $50.6 billion reported a year ago. Analysts polled by Thomson Reuters expected guidance of fiscal second quarter revenue of $53.79 billion, up 6.4 percent year-over-year. Cook has attributed the company's expected return to growth iPhone 7, but also to growth in services revenue and a "very bullish" long-term future in China, where sales fell 12 percent in the first fiscal quarter."

Dow Jones Technical levels to watch

In term of technical levels, upside barriers are aligned at 20143 (high Jan.27), then at 20238 (upside projection) and above that at 20407 (2nd upside projection). While supports are aligned at 19679 (50-DMA), later at 19127 (short-term 61.8% Fib) and below that at 18813 (short-term 50.0% Fib).

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