Stocks fall as coronavirus hits profits including Apple
Apple warned its investors on Monday that it won't meet its second-quarter financial guidance
U.S. equity futures are trading lower after Apple said it would fail to meet its profit target.
The major futures indexes are indicating a decline of 0.5 percent when trading resumes on Tuesday following the Presidents Day holiday.
Apple Inc. joined the growing number of companies who are forecasting a hit to their bottom lines from the coronavirus outbreak.
Apple warned its investors on Monday that it won't meet its second-quarter financial guidance because the outbreak has cut production of iPhones.
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The company said all of its iPhone manufacturing facilities are outside Hubei province, the epicenter of the outbreak, and all have been reopened. But production is ramping up slowly.
Shares of Apple are down 3 percent in the premarket.
“The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues,” Apple said in a statement.
In earnings news, Walmart reported fourth-quarter earnings and revenue that fell short of Wall Street estimates, sending shares of the retailer lower.
In Asia, Japan's Nikkei index lost 1.4 percent, the Hang Seng in Hong Kong lost 1.5 percent and the Shanghai Composite was little changed.
In Europe, London's FTSE fell 0.8 percent, Germany's DAX slipped 0.7 percent and France's CAC was lower by 0.4 percent.
CHINA REPORTS 1,886 NEW VIRUS CASES, DEATH TOLL UP BY 98
Signs suggest China may postpone its annual congress, its biggest political meeting of the year. The standing committee for the National People’s Congress will meet Feb. 24 to deliberate postponing the meeting that is due to start March 5.
China reported 1,886 new virus cases and 98 more deaths in its update Tuesday. A report saying the disease outbreak has caused a mild illness in most people raised optimism among global health authorities.
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But as the outbreak persists, bringing new travel advisories and disrupting trade, travel and supply chains, it is casting a vast shadow over the regional economy.
The Associated Press contributed to this article.