LDN - Business

Technology stocks set to weigh on Wall Street

[October 19, 2017] By Sruthi Shankar

(Reuters) - Wall Street was set to open lower on Thursday, a day after the major indexes scaled new highs, as heavyweight technology stocks Apple and eBay slipped.

Apple <AAPL.O> shares slid 1.72 percent in premarket trading amid concerns over demand for iPhone 8 and iPhone 8 Plus.

eBbay <EBAY.O> tumbled 5.72 percent after the online marketplace warned current-quarter profit could miss estimates.

Technology sector has had a strong run this year, with the S&P tech index <.SPLRCT> up more than 30 percent, double the gains recorded by the broader S&P index.

"People think that October is a scary time and they should take profits, maybe that is what's happening with the tech stocks," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

"It's going to be more a company specific day and looks like earnings will be able to support the stock price."

U.S. stocks seem to be coming under pressure on a day that marks 30th anniversary of the 1987 Black Monday stock market crash.

At 8:33 a.m. ET, Dow e-minis <1YMc1> were down 104 points, or 0.45 percent, with 49,800 contracts changing hands.

S&P 500 e-minis <ESc1> were down 12.25 points, or 0.48 percent, with 301,791 contracts traded.

Nasdaq 100 e-minis <NQc1> were down 39.5 points, or 0.65 percent, on volume of 56,692 contracts.

The declines come after the Dow closed above 23,000 for the first time on Wednesday.

[to top of second column]

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 13, 2017. REUTERS/Brendan McDermid

Trump's drive to overhaul the U.S. tax code is headed for a pivotal moment, with Senate Republicans poised to approve a budget measure that would help them pass tax legislation without Democratic support.

Trump is set to meet Federal Reserve Chair Janet Yellen, whose term expires in February. Investors are keen to see whom Trump will pick as her replacement. The White House said Trump would announce his decision in the "coming days".

Among positive news was a report that showed the number of Americans filing for unemployment benefits fell to its lowest in more than 44 years last week, indicating a rebound in job growth.

The Labor Department report said initial jobless claims numbers fell 22,000 to 222,000. Economists polled by Reuters had forecast a decline to 240,000.

Nike <NKE.N> dipped 1.72 percent after Goldman Sachs downgraded its stock to "neutral" from "buy".

United Airlines <UAL.N> fell about 3 percent after the company said net income fell because of losses from flight cancellations during the hurricane season.

Adobe <ADBE.O> jumped 7.30 percent after the company's fiscal 2018 earnings forecast beat estimates, prompting a slew of price target raises.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)

Back to top