Stock futures down as
Apple, oil prices drop
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[October 26, 2016]
By Yashaswini Swamynathan
stock index futures were lower for the second straight day on Wednesday
following Apple's disappointing quarterly sales and a dip in oil prices.
Shares of the world's most valuable public company were off 3.4 percent
in heavy premarket trading after the company said sales of its flagship
iPhones fell for the third quarter in a row.
Oil prices fell more than 1 percent - Brent crude was on track for
the fourth day of declines - after Iraq said it did not want to join an
output-limiting deal with OPEC members, and U.S. drillers stepped up
Movement in the markets have largely been dictated by corporate earnings
in the past few weeks, but events such as the upcoming U.S. presidential
election and the prospects of a U.S. interest rate hike in the coming
months have added volatility.
Wall Street closed lower on Tuesday, after a set of housing and consumer
products companies reported weak results and forecasts.
Still, S&P 500 companies are collectively expected to report a 1.7
percent rise in earnings, snapping a four-quarter streak of profit
declines, according to Thomson Reuters I/B/E/S.
Dow component Boeing will report results before markets open, while
electric carmaker Tesla's results are due after the bell.
A report at 10:00 a.m. ET is likely to show new home sales slipped 1
percent to 600,000 units last month.
Shares of Edwards Lifesciences <EW.N> fell nearly 10 percent to $102.38
premarket after the medical device maker reported third-quarter sales
that missed expectations.
Weapons maker Northrop Grumman rose 2 percent to $223.96 after the
company reported a 16.7 percent jump in quarterly profit.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S., October 25, 2016. REUTERS/Brendan McDermid
Chipotle Mexican Grill dropped 3.9 percent to $390 in light trading after the
restaurant chain operator reported a bigger-than-expected drop in quarterly
sales at established restaurants.
Biogen rose 2.8 percent to $294 after the drugmaker reported a 7 percent rise in
Futures snapshot at 6:58 a.m. ET:
Dow e-minis were down 78 points, or 0.43 percent, with 19,669 contracts
S&P 500 e-minis were down 8.5 points, or 0.4 percent, with 120,756 contracts
Nasdaq 100 e-minis were down 26.5 points, or 0.54 percent, on volume of 23,186
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Don Sebastian)
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