Stock futures were setting Wall Street up for wide losses on Thursday, Oct. 19, as eBay Inc. (EBAY) - Get eBay Inc. Report and Apple Inc. (AAPL) - Get Apple Inc. (AAPL) Report took down the rest of the tech sector.
Dow Jones Industrial Average futures were down 0.48%, S&P 500 futures fell 0.5% and Nasdaq futures declined 0.75%.
The Dow closed above 23,000 for the first time ever on Wednesday, Oct. 18, as strong earnings from International Business Machines Corp. (IBM) - Get International Business Machines (IBM) Report pushed the blue-chip index higher. The S&P 500 and Nasdaq also closed at records.
eBay declined more than 6% in premarket trading after the online marketplace reported mixed third-quarter financial results. For the quarter, eBay reported adjusted earnings of 48 cents a share on revenue of $2.4 billion. Analysts polled by FactSet were expecting adjusted earnings of 48 cents share on revenue of $2.37 billion.
The company said it forecasts fourth-quarter revenue of between $2.58 billion and $2.62 billion, and adjusted earnings per share of between 57 cents and 59 cents. Analysts project fourth-quarter revenue of $2.58 billion and adjusted earnings of 60 cents.
Verizon Communications Inc. (VZ) - Get Verizon Communications Inc. Report added 2% in premarket trading after posting a better-than-expected third quarter. Net income of 89 cents a share was flat from a year earlier. Adjusted earnings of 98 cents a share came in a penny above expectations. Revenue of $31.72 billion exceeded consensus of $31.44 billion. The telecom added 66,000 Fios internet subscribers over the quarter with revenue in the unit rising by 4.8%.
Travelers Cos. Inc. (TRV) - Get Travelers Companies, Inc. Report rose before the bell even as earnings results took a hit on a string of hurricanes toward the end of the third quarter. Catastrophe losses totaled $455 million over the recent quarter, far higher than $89 million a year earlier. Core operating earnings of 91 cents a share declined from $2.40 a year earlier. Total net income in the quarter was $1.05 a share vs. $2.45 a year earlier.
Roughly 10% of S&P 500 companies have reported earnings so far, the majority of which have bested profit and sales estimates. Analysts anticipate blended earnings growth of 4.4% in the third quarter, or 2.3% excluding energy, according to Thomson Reuters estimates. Revenue is expected to rise by 4.4%.
Dow component Apple declined before the bell on reports that orders for the new iPhone 8 may be less robust than forecast. Taiwan's Economic Daily newspaper reported Thursday, citing unnamed sources, that several suppliers had been told by Apple that it will cut orders for iPhone8-related components by as much as 50% for the final three months of the year. A separate report in The Wall Street Journal alleged that the Apple Watch's cell connection function was switched off in China with no warning.
Apple's shares have seen weakness in recent weeks on reports of weak demand for its upcoming iPhone X and software glitches with its latest Apple Watch.
Other tech stocks were in decline, including Netflix Inc. (NFLX) - Get Netflix, Inc. (NFLX) Report , Alphabet Inc. (GOOGL) - Get Alphabet Inc. Class A Report , Amazon.com Inc. (AMZN) - Get Amazon.com, Inc. Report , Nvidia Corp. (NVDA) - Get NVIDIA Corporation Report and Facebook Inc. (FB) - Get Facebook, Inc. Class A Report .
Jobless claims fell in the past week to their lowest level since March 1973. The number of new claims for unemployment benefits dropped by 22,000 to 222,000. The less volatile four-week claims average slid 9,500 to 248,250.
Manufacturing conditions in the Philadelphia region jumped in October, according to the latest Philadelphia Fed manufacturing index. The measure increased by four points to 27.9 this month, according to the Philadelphia Fed. Economists expected the measure to ease to 20.2 from a previous reading of 23.8.
American Express Co. (AXP) - Get American Express Company Report declined more than 1% in premarket trading after CEO Kenneth Chenault, who has led the lender for 16 years, announced he would be stepping down. Chenault, 66 years old, who also serves as board chairman, will be succeeded by Vice Chairman Steve Squeri on Feb. 18, the New York-based company said in a statement on Wednesday. Squeri, who oversees operations including technology as head of the global customer services group, has worked at American Express since he took a management position in the traveler's checks business in 1985.
AmEx on Wednesday posted 19% growth in third-quarter profit. Net income of $1.4 billion, or $1.50 a share, outpaced the $1.48 average of analysts surveyed by FactSet as cardholder spending climbed. The company said it expects earnings for the year of $5.80 to $5.90 a share, while analysts expect earnings of $5.74
So who is the new CEO of American Express?
Updated from 7:46 a.m. ET, Oct. 19.
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