NEW YORK (TheStreet) -- Stocks returned to near session lows on Wednesday morning as crude oil dipped below $50 a barrel on the back of a rise in weekly inventories.
The S&P 500 was down 0.25%, the Dow Jones Industrial Average fell 0.31%, and the Nasdaq declined 0.75%.
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 fell 1.8% to $49.93 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) shares tumbled 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) slid 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 2.9% 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.
GoPro (GPRO) 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) 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.
Coca-Cola (KO) shares were on watch after the beverage giant reported net income of 63 cents a share, 3 cents higher than anticipated. Revenue fell 3.3% to $12.16 billion, as currency exchange reduced the top-line by seven percentage points.
Boeing (BA) 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.
AT&T (T) and DirecTV's (DTV) proposed merger has received official recommendation from Federal Communications Commission Chairman Tom Wheeler. AT&T's $49 billion purchase will come with strings, though, as the combined company will be required to submit interconnection agreements and network performance reports to the agency. The deal has already received approval from the Department of Justice.
Thoratec (THOR) 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.