* Futures down: Dow 17 pts, S&P 3.25 pts, Nasdaq 15.75 pts
By Tanya Agrawal
May 3 U.S. stock index futures were lower on
Wednesday after downbeat earnings reports from companies,
including index-heavyweight Apple.
* Shares of Apple dropped 1.8 percent to $144.89 in
premarket trading, a day after the company reported a surprise
fall in iPhone sales and forecast current-quarter revenue below
* Akamai Technologies tumbled 15 pct after it gave
a weak forecast for current-quarter revenue and profit. Gilead
dropped nearly 2 percent after the drugmaker reported a
* Strong corporate reports so far had resulted in estimates
for first-quarter profit growth at S&P 500 companies increasing
to 13.9 percent as of Tuesday, from an estimate of 10.4 percent
growth two weeks back, according to Thomson Reuters I/B/E/S.
* The strong earnings have also helped offset some fears
about geopolitical tensions in the Korean peninsula, the lack of
progress by the Trump administration in enacting its economic
agenda as well as mixed economic data.
* Data last week showed the U.S. economy grew at its slowest
pace in three years in the first quarter. Since then automakers
have reported a drop in vehicle dales for March, which along
with the drop in iPhone sales, have added to nerves.
* The Federal Reserve could address GDP when it issues a
statement at 2 p.m. ET (1800 GMT), at the end of its two-day
meeting on interest rates. While the central bank is expected to
hold interest rates steady, it may hint it is on track for an
increase in June.
* Economic data due Wednesday includes ADP's jobs numbers,
which is expected to show U.S. companies added 175,000 workers
in April, less than the 263,000 its added in March. The report,
due at 8:15 a.m. ET, comes ahead of Friday's non-farm payrolls
number for April.
* Separately, the Institute for Supply Management is likely
to report that its non-manufacturing index increased to 55.8 in
April from 55.2 in March.
* Twilio tumbled 32.2 percent to $23.01 after the
cloud-based communication software maker's revenue forecast came
in below estimates.
* Weight Watchers jumped 13.7 percent to $24.10 as
the weight management company raised its profit forecast.
* Facebook, Tesla, AIG and Metlife
are scheduled to report after the close of market.
Futures snapshot at 6:53 a.m. ET:
* Dow e-minis were down 17 points, or 0.08 percent,
with 8,709 contracts changing hands.
* S&P 500 e-minis were down 3.25 points, or 0.14
percent, with 53,280 contracts traded.
* Nasdaq 100 e-minis were down 15.75 points, or 0.28
percent, on volume of 14,117 contracts.
(Reporting by Tanya Agrawal; Editing by Savio D'Souza)