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US pre-open: Futures point to losses following warning from Apple

By Iain Gilbert

Date: Tuesday 18 Feb 2020

US pre-open: Futures point to losses following warning from Apple

(Sharecast News) - US futures had stocks opening lower on Tuesday as traders returned from the long President's Day weekend to a revenue warning from tech giant Apple.
As of 1240 GMT, Dow Jones futures were down 0.62%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.49% at 0.73% lower, respectively.

The Dow closed 0.09% lower on Friday as stocks turned in a mixed performance ahead of the long weekend.

Apple told investors on Monday evening that it no longer expected to meet its quarterly revenue guidance, pointing to weakened production levels and lower demand in China in the wake of the Wuhan coronavirus outbreak.

With market participants continuing to assess the potential economic fallout stemming from the outbreak, China's National Health Commission said on Tuesday that an additional 98 deaths had occurred nationwide, with 1,886 new cases of the coronavirus taking the total to 72,346 confirmed cases.

IG analyst Chris Beauchamp said: "A warning from Apple has put the cat among the pigeons and provided the first real evidence that the coronavirus will have ramifications beyond China.

"Markets had been rubbing along in expectation that stimulus from China would smooth over any bumps in the road. But Apple's warning upends those forecasts and suggests that we will see other companies reporting warnings."

On the macro front, Empire State manufacturing figures for February will be posted at 1330 GMT, while the National Association of Home Builders' monthly survey will follow at 1500 GMT.

Minneapolis Fed President Neel Kashkari will deliver remarks at an event in St Paul, Minnesota.

In corporate news, Advance Auto Parts, Agilent and Medtronic will all post earnings on Tuesday.

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