Stocks again open sharply lower, as Apple's Q1 revenue guidance cut weighs heavily on market sentiment; S&P -1.3%, Dow -1.6%, Nasdaq -1.9%.
Apple (-9%) CEO Tim Cook mostly cited weakness in China for lighter than expected iPhone revenue and believes trade tensions between the U.S. and China have put additional pressure on China's economy.
"This piles on to existing anxiety of a slowdown in global growth," says KKM Financial CEO Jeff Kilburg. "Apple can be used as a proxy to China’s growth."
Chip stocks Advanced Micro Devices (-7%), Nvidia (-4.7%), Skyworks (-7.2%) and Qorvo (-7.7%) are all sharply lower following the Apple warning.
European bourses have trimmed early losses, with U.K.'s FTSE +0.2%, France's CAC -0.6% and Germany's DAX -0.7%; in Asia, Japan's Nikkei was closed while China's Shanghai Composite finished flat.
A look at the S&P 500 sectors shows information technology (-2.9%) and industrials (-1.3%) leading the retreat, while the defensive-oriented real estate (+0.8%) and utilities (+0.7%) groups trade in the green.
The health care sector (-0.5%) is lower despite Celgene's (+27.8%) $74B acquisition by Bristol-Myers Squibb (-13.5%).
U.S. Treasury prices are mixed, with the benchmark 10-year yield down 2 bps to 2.64% but the two-year yield up a basis point to 2.50%, while the U.S. Dollar Index -0.3% to 96.53.
U.S. WTI crude oil +1% to $47.02/bbl.
Now read: Stocks down more than 1% at open »
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