Mid-Morning Market Update: Markets Open Lower; Apple To Miss Q2 Revenue Guidance

Following the market opening Tuesday, the Dow traded down 0.34% to 29298.15 while the NASDAQ fell 0.10% to 9721.71. The S&P also fell, dropping 0.19% to 3,373.88.

Leading and Lagging Sectors

Communication services shares climbed 0.4% on Tuesday. Meanwhile, top gainers in the sector included Wanda Sports Group Co Ltd WSG, up 21%, and Vonage Holdings Corp. VG, up 15%.

In trading on Friday, energy shares fell 0.9%.

Top Headline

Apple Inc. AAPL on Monday said that it doesn't expect to meet the revenue guidance for the quarter ending in March, as both its supply chain and the demand for its products is impacted by the novel coronavirus (COVID-19) outbreak..

Apple previously outlined revenue guidance of $63 billion to $67 billion for this quarter but didn’t provide a number in the latest update. The Cupertino-based company noted that while production has started since the extended Lunar New Year holiday, it’s not resuming as fast as the company initially expected.

Equities Trading UP

Bellerophon Therapeutics, Inc. BLPH shares shot up 69% to $5.80 after the company reported positive top-line data from ancillary acute hemodynamic study of INOpulse for treatment of Pulmonary Hypertension associated with Pulmonary Fibrosis.

Shares of Legg Mason, Inc. LM got a boost, shooting 24% to $50.38 after Franklin Resources announced it plans to acquire the company for $50 per share.

Wanda Sports Group Company Limited WSG shares were also up, gaining 17% to $3.51.

Equities Trading DOWN

Fluor Corporation FLR shares tumbled 25% to $14.57 after the company announced that the SEC is conducting an investigation into the company's past accounting and financial reporting. The company also gave preliminary FY20 guidance which was in-line with analyst estimates.

Shares of LMP Automotive Holdings, Inc. LMPX were down 12% to $11.03 after dropping 20% on Friday.

Trans World Entertainment Corporation TWMC was down, falling 12% to $3.75. Trans World Entertainment reported shareholder approval of sale of its FYE segment.

Commodities


In commodity news, oil traded down 1.8% to $51.12, while gold traded up 0.2% to $1,590.20.

Silver traded up 0.7% Tuesday to $17.85, while copper fell 0.1% to $2.5975.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 slipped 0.6%, the Spanish Ibex Index rose 0.2%, while Italy’s FTSE MIB Index fell 0.10% Meanwhile, the German DAX slipped 0.8%, and the French CAC 40 fell 0.5% while UK shares fell 0.9%.

Economics

The NY Empire State manufacturing index rose to 12.9 in February, versus a reading of 4.8 in January.

The NAHB housing market index declined to 74 in February, compared to 75 in the prior month.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

Federal Reserve Bank of Minneapolis President Neel Kashkari is set to speak at 2:00 p.m. ET.

The Treasury International Capital report for December is scheduled for release at 4:00 p.m. ET.