Futures tumble on Apple's China warning ahead of earnings season

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US markets roared back into positive territory on Friday after a steep drop a day earlier, thanks to an upbeat jobs report and a signal from the head of the Federal Reserve that interest rates will not be rising as quickly as some had forecast. The 30-stock index fell to its low of the day right before the close, tumbling as much as 707.83 points.

The two nations have been locked in a trade war for much of the past year, disrupting the flow of hundreds of billions of dollars worth of goods and stoking fears of a global economic slowdown.

Those worries, along with a weak revenue forecast from Apple, contributed to steep losses Thursday.

Only 10 companies on the S&P 500 fell, and 90 per cent of the stocks on the New York Stock Exchange traded higher.

Later on Friday morning, Federal Reserve Chairman Jerome Powell said the central bank will be patient in raising rates, quelling fears of tighter monetary policy in the near future.

The Dow Jones fell almost 2.8 to 22,686.22 points just days after it completed its worst year in a decade.

Netflix and Intel rose 4.4 percent and 4.5 percent, respectively. Katie Nixon, chief investment officer for Northern Trust Wealth Management, said investors will keep reacting to the economy's health and to concerns about high levels of corporate debt as interest rates rise. The slowdown in the Chinese economy also impacted its revenue, he said. On Friday, the Department of Labor said USA employers added 312,000 jobs in December 2018, the fastest rate since last February, while the unemployment rate rose slightly to 3.9%.

The Dow rallied by 602.29 points, or 2.65 percent, to reach 23,288.51 an hour after the United States stock market opened. Netflix and Intel rose 9.1 percent and 5 pecent, respectively.

This time, shortly after the decline, the Dow Jones regained points and the net fall, as of the time of publication, now stands at 409 points.

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European shares also overcome their Thursday losses, with Germany's DAX gaining 3.4%, France's CAC 40 rising 2.7% and Britain's FTSE 100 advancing 2.2%. Copper rose 3.1% to $2.65 a pound.

Technology, healthcare and industrial firms and banks made strong gains.

The U.S. government said employers added 312,000 jobs last month.

While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be.

China's Commerce Ministry said trade talks will be held Monday and Tuesday in Beijing and market watchers are once again looking for signs the world's largest economic powers will make progress toward resolving their dispute.

Beyond Apple, investors were also rattled by the biggest one-month decline in United States factory activity since the Great Recession.

The Dow Jones Industrial Average rose 308 points, or 1.4 percent, to 22,994.

The biggest gainer in the S&P 500 was Mattel, which leaped 12.3% to $10.41. Retailers and internet companies rose as well, with Amazon up 4.1 per cent at $1,561 and Google's parent company, Alphabet, rising 4.1 per cent to $1,067. The stock has dropped from its all-time high of $232.07 per share back in October, to its current trading price of just ~$143.84 per share.

The price gap is one reason Huawei surpassed Apple in smartphone sales from April through September a year ago to seize the No. 2 spot behind industry leader Samsung, according to the research firm International Data Corp.