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Stock Futures Lower After Apple Misses
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Loading...Stock futures were lower on Wednesday morning after Apple (AAPL) posted quarterly iPhone sales that were weaker than analysts had anticipated.
Apple was down 1% in premarket trading after beating estimates on its bottom-line but falling short on the top. The world's largest publicly traded company earned $2.10 a share on $52.9 billion in revenue. Analysts predicted earnings of $2.02 a share on sales of $53.02 billion. iPhone shipments of 50.8 million also fell short of estimates of 52.27 million. Services revenue rose 18% to $7.04 billion, which was slightly below consensus of $7.06 billion.
The pace of new hires in the private sector slowed in April, according to the ADP National Employment Report. Private-sector employers added 177,000 jobs in April, slowing from a revised job creation rate of 255,000 in March. Economists had expected 180,000 jobs to have been added to private payrolls in April.
The ADP employment report is released the Wednesday before the official jobs report from the Labor Department on the first Friday of each month. On Friday, analysts anticipate data to show 193,000 jobs to have been added to the U.S. economy in April and for the unemployment rate to hold at 4.6%. Average hourly earnings are expected to grow 0.3%. The U.S. added 235,000 and 98,000 jobs over February and March, respectively, the first full two months under Donald Trump's presidency.
Wall Street was also looking ahead to an afternoon announcement from the Federal Reserve. Members of the Federal Open Market Committee will assess recent mixed data and make a decision on interest rates on day two of their semi-monthly meeting. The majority of economists don't expect a change in interest rates.
"We won't get a hike," said Luke Bartholomew, investment manager at Aberdeen Asset Management. "This meeting is going to be all about the signal that it sends about June. The Fed has a long track record of using one meeting to set up for something significant at the next one. It helps keep the market posted on Fed thinking and stops them from getting a shock. But the Fed waited quite late to signal their March hike. The tactic worked pretty well for them so they might do the same again. That would mean them giving away very little from this meeting and waiting to use speeches closer to the June meeting to reveal their thinking."
Bloomberg
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