Poor outlooks from Apple, Boeing pull US stocks lower
US stocks opened lower Wednesday after Apple and Boeing shares fell sharply on disappointing earnings forecasts.
Five minutes into trade, the Dow Jones Industrial Average was at 16,038.48, down 128.75 points (0.80 percent).
The broad-market S&P 500 fell 7.03 (0.37 percent) to 1,896.60, while the tech-rich Nasdaq Composite dropped 17.60 (0.39 percent) to 4,550.07.
Apple shares sank 5.2 percent after the tech giant reported only minimal growth in sales of iPhone, its main money-maker, in the fiscal first quarter and forecast the first ever decline in iPhone sales in the current quarter.
Boeing meanwhile slumped 8.3 percent after offering a disappointing 2016 outlook, saying revenues and deliveries could fall, and offering an earnings per share forecast well below what analysts were expecting.
The Wall Street action came as Federal Reserve policymakers meet for a second day, after raising interest rates in December for the first time in more than nine years.
While no change in policy is expected, all eyes will be on the Federal Open Market Committee’s statement that is scheduled for release at 1900 GMT.
“Most moves today, however, can be considered subject to change — up or down — knowing that the FOMC is certain to stir the pot one way or another with its directive,” said Patrick O’Hare at Briefing.com.