US futures down more than 150 points after Apple issues revenue warning

US futures down more than 150 points after Apple issues revenue warning

U.S. stock index futures were lower Tuesday morning after Apple said Monday it does not expect to meet its second-quarter forecast for revenue.

Around 5:20 a.m. ET, Dow futures indicated a drop of about 125 points at the open. Futures on the S&P and Nasdaq were both lower, after closing at record highs late last week.

Wall Street stocks were closed on Monday, as investors observed a market holiday.

Apple has cautioned it does not expect to meet its quarterly revenue forecast, citing slowed production and weakened demand in China as a result of the coronavirus outbreak. The most valuable company in the U.S. initially said it expected to report net sales between $63 billion to $67 billion in its fiscal second quarter. Apple has not provided an updated forecast for its fiscal second-quarter revenue on Monday.

Shares of Apple were down 3.6% in pre-market trade.

The revenue warning appeared to dent market sentiment, as investors continue to assess the potential economic fallout of China’s fast-spreading coronavirus.

China’s National Health Commission on Tuesday reported an additional 98 deaths nationwide, with 1,886 new cases of the coronavirus. As of Feb. 17, the commission said there had been a total of 72,346 confirmed cases and 1,868 deaths.

Data, earnings

On the data front, Empire State manufacturing figures for February and the National Association of Home Builders (NAHB) survey for February will both be released during morning trade.

In corporate news, Medtronic, Walmart, and Advance Auto Parts are among some of those to report earnings before the opening bell. Agilent, Water Works, and Invitation Homes are among those set to release their latest quarterly earnings after market close.

Elsewhere, Minneapolis Fed President Neel Kashkari is scheduled to deliver remarks on the world’s largest economy at an event in St. Paul, Minnesota on Tuesday.

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