NEW YORK (TheStreet) -- Stocks remained in the red on Wednesday as crude oil closed below $50, its lowest level since April 2.
The S&P 500 was down 0.2%, the Dow Jones Industrial Average fell 0.52%, and the Nasdaq declined 0.61%.
Crude oil prices continued in their downward spiral on Wednesday after weekly inventories rose 2.5 million barrels. Analysts had expected crude stocks to decline 1.9 million barrels. West Texas Intermediate crude closed 3.3% lower to $49.19 a barrel. Prices have been under pressure as the safe-haven U.S. dollar gains on an anticipated Federal Reserve hike later this year.
Apple(AAPL) - Get Report shares pressured benchmark indexes, tumbling 4.5% after revenue projections for the iPhone maker's fiscal fourth quarter fell shy of estimates. The tech giant guided for fourth-quarter sales of $49 billion to $51 billion, below estimates of $51.1 billion.
Third-quarter iPhone sales also disappointed. Apple sold 47.5 million units over the three months, below a target of 48.8 million. CEO Tim Cook cited lower channel inventory as reason for the miss.
Microsoft(MSFT) - Get Report slid 4.3% as revenue projections came in weaker than expected. The company anticipates fiscal first-quarter revenue as high as $21.3 billion, below consensus of $22.8 billion. Currency exchange is expected to reduce first-quarter and second-quarter revenue by 5%, the software maker said.
The Windows software developer also said it had taken a $7.6 billion write-off on its Nokia phone business in its recent quarter. The charge was tied to the costs associated with 7,800 job cuts.
Yahoo! (YHOO) also guided for weaker-than-expected future sales. The Internet company slipped 0.45% after forecasting third-quarter revenue between $1 billion and $1.04 billion, short estimates of $1.07 billion. Yahoo!'s most recent quarter also fell below estimates with net income of 16 cents a share missing by 2 cents. Profit was hurt by higher user acquisition costs.
Losses in Apple, Microsoft and Yahoo! shares pressured the technology sector. Facebook(FB) - Get Report, IBM(IBM) - Get Report, Netflix(NFLX) - Get Report, LinkedIn (LNKD) and Broadcom (BRCM) were all lower, while the Technology SPDR ETF (XLK) - Get Report dropped 1.6%.
We "definitely think the market is focusing on technology and with Apple missing on their forecast that's going to have an impact short-term. But long-term I see it as a buy opportunity," Mario Minotti, president of Mario P. Minotti Group, told CNBC.
Baker Hughes (BHI) shares were briefly halted for volatility after a sharp drop of more than 10%. Baker Hughes dropped 3.3% once trading resumed and Halliburton(HAL) - Get Report fell more than 1% on a Bloomberg report that Department of Justice officials could block their merger on antitrust concerns.
GoPro(GPRO) - Get Report moved 1.2% higher after reporting quarterly profit of 35 cents a share, 9 cents above estimates. Revenue surged 71.7% on the back of strong sales in Asian markets. GoPro shipped 1.65 million cameras over the quarter, a 93% increase from a year earlier.
Chipotle(CMG) - Get Report increased nearly 4% even as same-restaurant sales cooled off from explosive gains in recent quarters. The burrito chain earned $4.45 a share, a penny above estimates, while revenue increased 14.3% to $1.2 billion. Comparable-store sales increased 4.3% in the second quarter compared to 10.4% in the first quarter and 17.3% in the year-ago quarter.
Boeing(BA) - Get Report shares added 2.8% after beating quarterly profit estimates by a wide margin. The aerospace company earned $1.62 a share, 25 cents above estimates, on revenue 11.3% higher than a year earlier. Full-year guidance was reduced to factor in the impact of necessary fixes to its KC-46 tankers.
Thoratec(THOR) - Get Report jumped 9.2% on news St. Jude Medical (STJ) will acquire the medical equipment developer for $63.50 a share, or a total $3.4 billion. The acquisition represents a 10% premium on Tuesday's closing price.
Existing home sales in the U.S. rose 3.2% to a 5.49 million rate in June, the fastest pace since 2007. Median sales hit a record high of $236,400, as constricted inventory supported prices. Economists expected existing home sales to rise to a slightly slower pace of 5.42 million.