(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window.)
* Apple drops after warnings on sales
* Walmart forecasts downbeat online sales growth
* Kroger jumps as Berkshire Hathaway reveals $549 mln stake
* Futures down: Dow 0.51%, S&P 0.39%, Nasdaq 0.54%
(Adds comment, details; updates prices)
By Medha Singh
Feb 18 (Reuters) - Wall Street was set to open lower on
Tuesday as a surprise sales warning from bellwether Apple fanned
worries about the impact of the coronavirus outbreak on global
supply chains.
The world's most valuable technology firm AAPL.O said it
was unlikely to meet its March-quarter sales guidance because of
slower iPhone production and weaker demand in China, sending its
shares down 2.3% in premarket trading. The news also sent shares of Apple suppliers, including
Qualcomm Inc QCOM.O , Broadcom Inc AVGO.O , Qorvo Inc QRVO.O
and Skyworks Solutions Inc SWKS.O , lower by 1.4% to 2.3%.
Apple's warning highlights issues that will eventually hurt
a lot of companies with exposure to China, said Art Hogan, chief
market strategist at National Securities in New York.
"It has shifted people's focus back to the ultimate economic
damage in the wake of this coronavirus," Hogan said.
While the exact hit to growth from the epidemic in China -
the global manufacturing hub - still remains to be seen, hopes
that the damage would only be temporary have helped Wall
Street's main indexes clinch 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, as Beijing seeks to fulfill commitments
made in its interim trade deal with the United States.
At 8:54 a.m. ET, Dow e-minis 1YMcv1 were down 151 points,
or 0.51%. S&P 500 e-minis EScv1 were lower 13.25 points, or
0.39% and Nasdaq 100 e-minis NQcv1 were down 52 points, or
0.54%.
Investors also parsed through mixed earnings reports.
Walmart Inc WMT.N forecast slowing online growth for the
year after reporting weak results for the holiday quarter that
suggested it was leaking sales to Amazon.com. However, shares of
the world's biggest retailer rose 0.9%. Conagra Brands Inc CAG.N shed 6.5% after the packaged food
company lowered its full-year profit and sales outlook.
Among other stocks, Kroger Co KR.N climbed 5.8% after
Warren Buffett's Berkshire Hathaway Inc BRKa.N unveiled a
$549.1 million stake in the supermarket chain. Asset manager Franklin Resources Inc BEN.N said it would
buy mutual fund company Legg Mason Inc LM.N in an all-cash
deal valued at $4.5 billion, to create an investing giant with
about $1.5 trillion in assets under management. Shares of Franklin jumped 14.3% and Legg Mason surged 23.4%.