*From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.* * **Apple Shockwaves:** For the first time in 16 years, Apple said it would cut its revenue guidance due to weaker-than-expected iPhone sales in the holiday quarter, which it blamed largely on a slowdown in China. CEO Tim Cook wrote in a letter to investors that the company would guide down to $84 billion in revenue for the first quarter, from a previous estimate of $89 billion to 93 billion. Apple ($AAPL) shares tumbled 10 percent in the aftermath of the announcement, which sparked fears among investors that Apple's days of hyper-growth could be over. It also raised further concerns about a cooling global economy and the state of innovation in tech ー enough to send the broader market sharply lower. * **All Eyes on China:** Apple's woes were a case study in the perils of being highly exposed to the Chinese economy at a time of slowing growth, made worse by escalating tensions over trade. China's juggernaut of a middle class ー 400 million people and counting ー was thought to be a sure bet for multinational companies, from Starbucks ($SBUX) to GM ($GM) to FedEx ($FDX), all of which saw virtually unlimited potential in the new market. With that market now cooling, to say the least, investors are selling off shares of those stocks highly leveraged to China. On the day after Apple's bombshell, everything from auto-parts suppliers to chipmakers to luxury retail took a beating. The Dow plunged Thursday, while the S&P closed down 2 percent and the tech-heavy Nasdaq shed 3 percent, before rebounding sharply on Friday. * **Tesla Disappoints:** Tesla also had a rocky start to the new year, with shares diving after the company missed expectations on car deliveries for the last quarter of 2018 and broadly discounted its vehicles to offset subsidy cuts. In a note to investors, Tesla ($TSLA) reported it delivered 90,700 total vehicles ー well under Wall Street's forecast. The company also announced it is cutting the price on all of its models by $2,000 in an effort to absorb some of the cost associated with a reduction in federal tax credits for electric vehicle owners. As of Jan. 1, Tesla'a $7,500 federal tax credit was cut in half to $3,750. * **Jobs Blowout:** The final jobs report of 2018 crushed expectations, with 312,000 jobs added to the rolls in December, far above the consensus expectation of 184,000, and a bookend to a year of explosive employment growth. The number was particularly heartening given that it took place during a dismal month for the markets and indicated that, at least so far, the volatility on Wall Street has not spread to hiring on Main Street. The unemployment rate ticked up to 3.9 percent, likely because of more workers entering the market. * **Shutdown Stalemate:** It's now been two weeks since the government partially shut down over funding for President Trump's border wall. Trump remains publicly firm on his $5 billion demand, while newly empowered House Democrats, led by Rep. Nancy Pelosi who regained the speakership, approved legislation that would reopen the government without wall funding. That legislation remains D.O.A. in the Senate. With 800,000 federal workers out of work or on furlough, this is now the fourth-longest shutdown in U.S. history, and shows no signs of ending. *ーCarlo Versano*
