U.S. futures point to another lower open after Apple (AAPL 144.44, -13.39, -8.5%) cut its revenue guidance for the first time since 2002. The S&P 500 futures trade 26 points, or 1.0%, although they were down as much as 1.9% overnight.
Specifically, Apple lowered its Q1 fiscal revenue guidance to $84 billion from the previously forecast range of $89-$93 billion. CEO Tim Cook, in a CNBC interview, said the shortfall is solely due to weaker-than-expected iPhone revenue, primarily in Greater China. Mr. Cook added that he believes trade tensions between the United States and China have put additional pressure on China's economy. In addition to pressuring Apple, the news has weighed on suppliers of the tech giant.
In other corporate news, Celgene (CELG 88.84, +22.20) is soaring 33.3% in pre-market hours after agreeing to be acquired by Bristol-Myers (BMY 47.30, -5.13, -9.8%) for $102.43/share, or roughly $74 billion, and one CVR per share.
Corporate news aside, investors received the latest batch of jobs data this morning ahead of tomorrow's release of the Employment Situation Report for December (Briefing.com consensus 180,000).
The ADP National Employment Report showed an increase of 271,000 in December (Briefing.com consensus 170,000), and the November reading was revised to 157,000 (from 179,000).
Separately, initial claims for the week ending December 29 increased by 10,000 to 231,000 (Briefing.com consensus 220,000) from last week's revised reading of 221,000 (from 216,000). Continuing claims for the week ending December 22 increased by 32,000 to 1.740 million from last week's revised reading of 1.708 million (from 1.701 million).
The key takeaway from the report is that claims continue hovering within a sideways range that has been maintained since mid-2018.
Looking ahead, investors will receive the ISM Manufacturing Index for December (Briefing.com consensus 57.8) at 10:00 a.m. ET, and auto and truck sales throughout the day.
Longer-dated U.S. Treasuries have extended their gains, pressuring yields. The benchmark 10-yr yield is down two basis points to 2.64%. The U.S. Dollar Index is down 0.3% to 96.55, and WTI crude is up 1.9% to $47.40/bbl.