Equity futures were down around 300 points during the overnight session following Apple’s after-the-bell announcement that revenue for the holiday quarter would be lower than anticipated.
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Dow Jones futures were falling by 1.4 percent. The S&P 500 dropped 1.4 percent and the Nasdaq Composite was down 2.5 percent.
Apple shares tumbled more than 8 percent in premarket trading Thursday, after the iPhone maker warned that quarterly revenue for the crucial holiday sales season would be lower than expected.
That drop in Apple shares will shave 85 points off the Dow Industrials when the markets opens.
Apple CEO Tim Cook said in a letter to shareholders released after markets closed, attributed most of the revenue drop to lower iPhone sales, China’s slowing economy and trade tensions between China and the U.S.
Chipmakers ASM International, Infineon and ST Micro were down between 3 and 4 percent.
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In Asian market trading, China’s Shanghai Composite traded flat, while Apple suppliers in across the region came under pressure.
Hong Kong’s Hang Seng ended the day down 0.3 percent.
Japan’s Nikkei index was down 0.3 percent.
In Europe, Apple’s suppliers were also taking a hit as London’s FTSE traded down by 0.3 percent, Germany’s DAX fell 0.6 percent and France’s CAC lost 0.8 percent.
U.S. stocks ended a volatile first session of 2019 with small gains as energy companies Wednesday helped boost major averages.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 23346.24 | +18.78 | +0.08% |
| SP500 | S&P 500 | 2510.03 | +3.18 | +0.13% |
| I:COMP | NASDAQ COMPOSITE INDEX | 6665.9381 | +30.66 | +0.46% |
When the session began the Dow Jones Industrial Average plunged nearly 400 points on weaker-than-expected Chinese economic data. Investors worried that such data could get worse if a trade deal with the U.S. isn’t reached soon.
But then oil prices spiked on a report that crude exports from Saudi Arabia fell last month on lower U.S. production. The news came as output cuts of 1.2 million barrels per day by Saudi Arabia, Russia and others come into play. Oil, which was down as much as 2.3 percent earlier, surged almost 5 percent.
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As a result, shares of oil companies, both those with heavy investments in exploration and production and those with a focus on refining and marketing, jumped.
Shares of tech and financial companies soon followed suit and for much of the afternoon the major averages moved in and out of positive territory. By the session’s conclusion all three averages finished higher.
On the U.S. economic calendar, investors will get the first of this week’s labor-related reports ahead of Friday’s monthly jobs report. Data on jobless claims and private industry placement will be released.
FOX Business’ Mike Obel and Thomas Barrabi contributed to this article.
