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* Futures down: Dow 0.59%, S&P 0.47%, Nasdaq 0.69%
By Medha Singh
Feb 18 (Reuters) - U.S. stock index futures dropped on
Tuesday as investors returned from a long weekend to a sales
warning from Apple Inc that highlighted the impact of the
coronavirus outbreak on global supply chains.
The world's most valuable technology firm AAPL.O said on
Monday it was unlikely to meet its March-quarter sales guidance
because of slower iPhone production and weaker demand in China.
Shares of the iPhone maker fell 3.1% in premarket trading,
while those of Apple suppliers, including Qualcomm Inc QCOM.O ,
Broadcom Inc AVGO.O , Qorvo Inc QRVO.O and Skyworks Solutions
Inc SWKS.O , declined between 2.0% and 3.2%. While the exact economic impact of the epidemic in the
global manufacturing hub still remains to be seen, hopes that
the damage would only be temporary has helped Wall Street's main
indexes clinch fresh record highs as early as last week.
Offering some relief to investors on Tuesday was China's
promise to grant exemptions on retaliatory duties imposed
against 696 U.S. goods, the most substantial tariff relief to be
offered so far, as Beijing seeks to fulfill commitments made in
its interim trade deal with the United States. At 7:25 a.m. ET, Dow e-minis 1YMcv1 were down 172 points,
or 0.59%. S&P 500 e-minis EScv1 were down 15.75 points, or
0.47% and Nasdaq 100 e-minis NQcv1 were down 66.5 points, or
0.69%.
Fourth-quarter earnings season has largely been positive
with 77.4% of the 387 companies in the S&P 500 beating analysts'
estimates for profit, according to IBES data from Refinitiv.
Walmart Inc WMT.N slipped 1.1% after the big-box retailer
forecast slowing online sales growth for the year after missing
analysts' estimates for quarterly sales and profit. Kroger Co KR.N was in a bright spot, climbing 6.3% after
Warren Buffett's Berkshire Hathaway Inc BRKa.N unveiled a
$549.1 million stake in supermarket chain.