Stocks are opening to the downside after a disappointing earnings announcement from tech giant Apple.
Following Tuesday’s market close, Apple reported that it missed analysts’ revenue expectations and issued guidance for the second quarter that was lower than what Wall Street expected. The company saw softness in China and that renewed worries about the health of the Chinese economy.
Oil also got a report after the market close Tuesday that inventories increased dramatically. A combination of an oil glut and the weakening Chinese economy pushed oil prices back to $30 a barrel. All that has led to the S&P 500 to fall by seven points to 1,896, the Dow Jones Industrial Average is dropping by 131 points to 16,035 and the Nasdaq is sliding by 19 points to 4,598.
China’s stock market initially started the day to the downside, but the People’s Bank of China intervened and the market closed down only 0.5 percent. Europe is trading in negative territory after several key companies warned that disappointing earnings were on the horizon.
Coty and Tiffany have agreed to develop, produce and distribute Tiffany scents for men and women. Coty stock is up over 1 percent to $23.47 and Tiffany stock is rising by almost 1 percent to $62.90. Coty will report its earnings on Feb. 4. No doubt Tiffany could use the extra business as the company had a difficult holiday season and is planning job cuts.
Looking ahead, the Federal Reserve will complete its two-day Federal Open Market Committee meeting, but is not expected to change rates. A policy statement will be issued at 2 p.m. EST. Chinese e-commerce giant Alibaba will deliver its earnings before the market opens on Thursday and analysts are hoping to see revenue jump .