US pre-open: Futures mixed as Apple slips, investors eye US midterms

(Sharecast News) - Wall Street futures were mixed ahead of the open on Tuesday, with investors digesting Apple's latest quarterly earnings and looking ahead to the US midterm elections. As of 1235 GMT, Dow Jones and S&P 500 futures were down 0.75% and 0.10%, respectively, while Nasdaq-100 futures had the index opening 0.32% higher.

The Dow closed 213.67 points higher on Monday, taking a bite out of losses recorded in the previous session.

Apple shares fell 2% in pre-market trading after the tech giant issued a weaker-than-expected margin outlook, while fiscal fourth-quarter iPad sales came in below Wall Street forecasts.



In terms of Tuesday's earnings, Shopify posted a 32% year-on-year increase in third-quarter revenues to $3.74bn, while gross profits rose to $1.78bn and operating income climbed to $568m. Looking ahead, the ecommerce platform said it expects fourth-quarter revenue growth in the low-30% range and gross profit growth in the high-20% range.

Pfizer reported third-quarter net income of $3.24bn, or $0.56 a share, with adjusted earnings of $0.87 per share on revenue of $16.58bn, beating analysts' forecasts on both the top and bottom lines, while Yum Brands also topped expectations as adjusted earnings rose to $1.56 per share from $1.49 expected on revenue of $2.05bn, although the KFC parent company said a cyclospora outbreak linked to iceberg lettuce at Taco Bell weighed on same-store sales growth during the period.

AMD, Super Micro Computer, Booking Holdings and Electronic Arts were all slated to report earnings after the close.

Investors were also keeping a close eye on the midterms on Tuesday, with prediction markets currently implying roughly a 75% chance of Democrats retaining control of the Senate. According to JPMorgan, a Democratic sweep of both chambers could trigger weakness in artificial intelligence-related stocks.

While Donald Trump remains in the White House, Democratic gains in either the House or Senate could still have significant implications for congressional oversight and investigations in Washington, with potential ramifications for sectors including defence, artificial intelligence and healthcare.

On the macro front, September factory orders data will be published at 1500 GMT, as will September JOLTS job openings figures.





Reporting by Iain Gilbert at Sharecast.com