Apple Earnings Hit Dow Jones Industrial Average Futures

Dow Jones Industrial Average ​​(DJIA) futures are trading below fair value, as a disappointing earnings report from Dow component Apple Inc. (NASDAQ:AAPL) is set to weigh on stocks -- and send AAPL south of a key level. Fellow blue-chip stock Boeing Co (NYSE:BA) is also signaling a post-earnings drop. These downbeat earnings reactions are overshadowing today's pending Federal Open Market Committee (FOMC) policy decision, set for release at 2:00 p.m. ET, not to mention surging oil prices. At last check, June-dated crude oil futures were up 2% at $44.91 per barrel. 

 Continue reading for more on today's market, including:

• Schaeffer's Senior Quantitative Analyst Rocky White presents 2 signs stocks could get hotter this summer. 
• A look at how volume skyrocketed during this China-based stock's sell-off. 
• Is there a bullish case to be made for Gap Inc (NYSE:GPS)?
• Plus... inside Apple's disappointing quarter, another Twitter fail, and Comcast's alleged takeover target. 

Futures on the Dow Jones Industrial Average (DJIA) are 27.3 points below fair value. 

5 Things You Need to Know Today

 

1. Apple suppliers weighed on Asian bourses, while rising oil prices and well-received earnings are lifting stocks in Europe. 
2. The Chicago Board Options Exchange (CBOE) saw 872,326 call contracts traded on Tuesday, compared to 458,647 put contracts. The resultant single-session equity put/call ratio plummetted to 0.53, while the 21-day moving average edged down to 0.66.
3. AAPL last night announced a drop in iPhone sales for the first time ever, on top of its first decline in revenue in over a decade. The stock is now set to fall almost 8% at the open, easily putting it back below the century mark. While traders seem focused on these negative developments, Apple's iPhone sales actually topped estimates, while an upcoming report is expected to reveal that the tech company increased its market share for high-end smartphones ​in mainland China. 
4. Elsewhere on the earnings front, social media stock Twitter Inc (NYSE:TWTR) has dropped close to 15% in electronic trading, after the company revealed lackluster quarterly results and a disappointing current-quarter revenue forecast. This upcoming post-earnings sell-off could be exacerbated by an unwinding of optimism on Wall Street. 
5. After initiating a relationship with Groupon Inc (NASDAQ:GRPN) earlier this month, Comcast Corporation (NASDAQ:CMCSA) now reportedly has its eye on Dreamworks Animation Skg Inc (NASDAQ:DWA). The Wall Street Journal reported that CMCSA offered to buy the animation studio for more than $3 billion. Meanwhile, CMCSA is up 1.6% in pre-market trading following a first-quarter earnings beat. 

Earnings and Economic Data

Today, the international trade balance, the pending home sales index, and the regularly scheduled crude inventories report will be released. 

Turning to corporate earnings, the Street expects to hear from Anthem (ANTM), Boston Scientific (BSX), CMCSA, Dr. Pepper Snapple (DPS), Facebook (FB), First Solar (FSLR), Garmin (GRMN), Hilton Worldwide (HLT), Marriott International (MAR), Mondelez (MDLZ), Northrop Grumman (NOC), O'Reilly Automotive (ORLY), Owens Corning (OC), PayPal (PYPL), Texas Instruments (TXN), and Xilinx (XLNX). To see what else is coming up on this week's schedule, click here. 

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