Futures lower as Apple slips, investors eye G7 meeting

[June 08, 2018]   By Ankur Banerjee

(Reuters) - U.S. stock index futures dipped on Friday as Apple fell following a report that the iPhone maker warned suppliers of lower parts orders.

Apple Inc's <AAPL.O> shares were down 2 percent in premarket trading after the company asked its supply chain to manufacture about 20 percent fewer components for iPhones in the latter half of 2018, according to a Nikkei report.

The S&P 500 technology index <.SPLRCT> looks set for its second straight day of losses after snapping a six-day rally on Thursday.

At 7:09 a.m. ET, Dow e-minis <1YMc1> were down 136 points, or 0.54 percent, S&P 500 e-minis <ESc1> were down 13.5 points, or 0.49 percent and Nasdaq 100 e-minis <NQc1> were down 71 points, or 0.99 percent.

Global markets were also lower on Friday as investors kept a wary eye on trade discussions at the G7 summit in Canada.

U.S. President Donald Trump's "America First" policies risk causing a global trade war and deep diplomatic schisms, with G7 leaders more divided than at any time in the group's 42-year history.

Investors are also cautious ahead of next week's U.S. Federal Reserve meeting on interest rates and an unprecedented U.S.-North Korea summit scheduled for June 12 in Singapore.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., June 4, 2018. REUTERS/Lucas Jackson

While the Fed is widely expected to raise interest rates for a second time next week, the focus is on whether it will hint at raising rates four times in 2018.

Among stocks, apart from Apple, other members of the so-called FAANG stocks — Facebook <FB.O>, Amazon <AMZN.O>, Netflix <NFLX.O> and Alphabet <GOOGL.O> were also lower.

U.S. chipmakers Advanced Micro Devices <AMD.O>, Qualcomm <QCOM.O> and Intel <INTC.O> were also lower on the Nikkei report.

Stitch Fix's <SFIX.O> shares rose 9 percent in premarket trading as the online personal stylist reported quarterly revenue and profit that blew past Wall Street estimates.

(Reporting by Ankur Banerjee in Bengaluru; Editing by Shounak Dasgupta)

[© 2018 Thomson Reuters. All rights reserved.]

Copyright 2018 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.