Dow Jones futures edged lower Tuesday night, along with S&P 500 futures and Nasdaq futures, as Apple stock retreated on a report that chip shortages will force iPhone production cuts. Crispr Therapeutics (CRSP) tumbled on study results.
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The stock market rally attempt had yet another weak close, finishing with slim losses Tuesday.
JPMorgan Chase (JPM) and Delta Air Lines (DAL) kick off earnings season early Wednesday, while inflation data and Fed minutes also are on tap.
Apple iPhone Cut
Apple (AAPL) will have to cut 2021 iPhone production goals of 90 million handsets by up to 10 million handsets due to extended chip shortages, Bloomberg News reported, citing sources. The Dow Jones tech titan reportedly is telling manufacturers that Broadcom (AVGO) and Texas Instruments (TXN) aren’t delivering enough components.
Apple stock fell more than 1% in overnight trading, with the iPhone production report perhaps not too big of a surprise. Shares are working toward recent lows. AAPL stock closed down 0.9% to 141.51 after the tech giant announced an Oct. 18 product event.
AVGO stock and Texas Instruments fell about 1%. Fellow Apple iPhone chipmakers such as Qorvo (QRVO), Skyworks Solutions (SWKS) and Cirrus Logic (CRUS) also edged lower.
One exception was QCOM stock, which rose slightly in extended trading. Qualcomm (QCOM) announced a $10 billion QCOM stock buyback program.
Crispr Stock Singed
CRSP stock slumped 8% in extended trade after releasing phase 1 test results of a gene-edited cancer drug. Crispr Therapeutics said Tuesday it’s planning to begin a pivotal study of its gene-edited cancer drug, CTX 110. Of the 26 lymphoma patients, 38% had no detectable cancer following the treatment. There were no major side effects.
Mixed Market Messages
But a number of high-beta growth names such as Tesla stock, Upstart Holdings (UPST), Zscaler (ZS) and Airbnb (ABNB) made strong moves, flashing various buy signals during Tuesday’s session. Solar stocks continued to rebound while U.S.-focused casino plays such as MGM Resorts (MGM) and Boyd Gaming (BYD) also rallied, triggering buy signs. Tesla (TSLA) rivals General Motors (GM) and Ford (F) continued to advance, with GM stock clearing an early entry and Ford nearing the top of a base. Matson (MATX) blasted above a short consolidation.
Tesla and ABNB stock are on IBD Leaderboard. UPST stock is on the Leaderboard watchlist. MGM stock is on SwingTrader.
The video embedded in this article discussed Wednesday’s market action and analyzed ZS stock, Matson and Boyd Gaming.
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Dow Jones Futures Today
Dow Jones futures fell lessthan 0.1% vs. fair value. S&P 500 futures sank 0.2%. Nasdaq 100 futures retreated 0.2%. Apple stock is a Dow Jones, S&P 500 and Nasdaq component.
On the plus side, German software giant SAP (SAP) gave preliminary Q3 results above consensus and guided higher for the full year.
The September consumer price index is due out at 8:30 a.m….
Read More: Dow Jones Futures Fall On Apple iPhone Woes; Market Rally Fizzles