Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- S&P 500 companies are significantly exposed to China, Apollo Chief Economist Dr. Torsten Slok highlighted today. In fact, geographic revenue data from FactSet shows that China makes up 7% of annual revenue for S&P 500 companies.
As an example, McDonald’s (NYSE:MCD) has 6,820 restaurants in China, Walmart (NYSE:WMT) operates 364 stores in China, and Apple (NASDAQ:AAPL) sold 43 million iPhones in China in 2024.
The revenue generated by S&P 500 companies selling to Chinese consumers totaled $1.2 trillion, about four times the size of the China/U.S. trade deficit.
The data suggests that decoupling from China will result in lower revenue and profits for the largest U.S. companies.
“The bottom line is that if the US has to decouple completely from China, it would result in a significant decline in earnings for S&P 500 companies no longer selling products to Chinese consumers,” Torsten commented.
