Analysts are expecting Apple to report first-quarter earnings of $3.23 a share on revenue of $76.61 billion. For the period last year, the company earned $3.06 a share on revenue of $74.6 billion.
Since the company's previous financial report, shares have dropped 11% on concerns over slowing iPhone sales. On top of this, traders will want to see how much of an impact China's economic slowdown will have on the top line. For the recent quarter, Wall Street firms are expecting iPhone sales to be between the range of 75 to 78 million.
Benjamin Stoto, director of research for CNBC's "Mad Money," is looking at three things in the earnings report. "The first is sales in China," he said. Apple has "essentially been doubling their sales year over year for the past couple quarters and investors are really looking at that specifically now that the Chinese stock market has collapsed. We'll also be looking at iPhone sales...there's a lot of concern due to some number of cuts from suppliers. Finally, I'll be watching gross margins. They've been making good progress but they want to keep this as close to 40% as they can."
On the economic calendar, the morning begins with the Redbook data at 8:55 a.m. ET followed by the S&P Case-Shiller home price index and consumer confidence data.