Stocks Set to Deflate From Records as Apple Retreats After iPhone X Reveal
New York (Sept 13) Stock futures were lower on Wednesday, Sept. 13, suggesting Wall Street would retreat from records as Apple Inc. (AAPL - Get Report) fell back after unveiling the iPhone X.
Dow Jones Industrial Average futures were down 0.11%, S&P 500 futures fell 0.16%, and Nasdaq gained declined 0.24%.
The Dow, S&P 500 and Nasdaq scored new records on Tuesday, Sept. 12, as the promise of tax reform fueled gains in the financials sector. The Dow finished at a new high by less than a point, while the S&P 500 ended at an all-time record high for the second day in a row.
Apple fell back nearly 1% in premarket trading as questions rose over the timing of the iPhone X. Sales of the new anniversary iPhone edition, the company said, will likely begin in early November, well in time for the peak of the U.S. holiday shopping season but still likely to push a good portion of the phone's revenue into the December to March quarter, the second of the company's next financial year. The later release could potentially hinder sales of the new iPhone 8, which will be available later this month.
Apple unveiled its highly anticipated iPhone 8, 8 Plus and iPhone X models during a press event on Tuesday afternoon. The iPhone 8 has a steel-reinforced glass design and stronger material to prevent cracks in what Apple calls its "most durable ever." The buzzier iPhone X relies on face ID for access to the phone instead of touch ID in current models and carries a $1,000 price tag.
•Here's the All-New $999 Apple iPhone X
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U.S. producer prices to be released Wednesday morning are expected to climb 0.3% month over month in August after a 0.1% dip in July, according to FactSet estimates. Excluding food and energy prices, prices are expected to rise by 0.2%. Core prices rose 1.8% year over year in July. Consumer prices will be released on Thursday, Sept. 14.
Inflation numbers out this week could give the Federal Reserve pause, particularly if the figures show a more long-lasting trend of softness. Recent weak readings on inflation have been characterized by Fed members as "transitory." Producer and consumer prices for August will factor into the Fed's next policy decision. The Federal Open Market Committee, the decision-making branch of the central bank, is set to meet for two days beginning on Tuesday, Sept. 19. An announcement and updated forecasts will be released on Wednesday, Sept. 20, followed by press comments from Fed Chair Janet Yellen.
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Crude oil prices were higher ahead of a weekly reading on domestic inventories. The Energy Information Administration's petroleum status report is set for a 10:30 a.m. release, as normal. The previous week showed a large increase in stockpiles as Hurricane Harvey crippled refinery production in the Texas and Louisiana region.
Harvey and lower global production has also impacted international supplies, the International Energy Agency said in its monthly report. The global oil supply fell by 720,000 barrels a day in August to 97.7 million barrels a day, its first drop in four months. Production among the Organization of the Petroleum Exporting Countries fell from its 2017 peak in July as the bloc took efforts to comply with its previous agreement. A monthly report from the cartel on Tuesday showed that production had fallen, largely attributed to output declines in Iraq, Libya, Gabon and Venezuela.
West Texas Intermediate crude was up 0.9% to $48.66 a barrel on Wednesday morning.
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