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- The main ETF tracking the tech-heavy Nasdaq-100 dropped in after hours trading Wednesday.
- Dow and S&P 500 futures opened for trading more than 1 percent lower.
- Apple said it sees first quarter revenue of $84 billion vs. a previous guidance of a range of $89 billion and $93 billion. It blamed weak China sales for the shortfall and some weakness in upgrade cycle in other countries.
- Apple shares were down 30 percent last quarter as Wall Street analysts warned this kind of announcement could be coming.
It's going to be a tough day for technology stocks on Thursday after Apple warned first quarter sales would be less than it previously expected.
The Invesco QQQ Trust, which track the tech heavy Nasdaq-100 Index, lost more than 2 percent in after hours trading on Wednesday. Apple shares cratered by 7 percent. The S&P 500 ETF Trust, tracking the broader market, lost more than 1 percent in extended trading.
Dow Jones Industrial Average futures dropped 338 points shortly after the open of trading Wednesday evening. S&P 500 futures lost 1.3 percent. The yen saw a giant move higher versus the U.S. dollar (about 2 percent) as investors sought safety in the Japanese currency.
Apple said it sees first quarter revenue of $84 billion vs. a previous guidance of a range of $89 billion and $93 billion. Analysts expected revenue of $91.3 billion for the period, according to the consensus estimate from FactSet. Apple blamed most of the revenue shortfall for struggling business in China. But the company also said that upgrades by customers in other countries were "not as strong as we thought they would be."
Chip stocks Advanced Micro Devices, Nvidia, Skyworks and Qorvo all dropped in after hours trading on the Apple warning. Best Buy lost 2 percent. Skyworks lost more than 5 percent.
"If you look at our results, our shortfall is over 100 percent from iPhone and it's primarily in greater China," Apple CEO Tim Cook told CNBC's Josh Lipton in an interview Wednesday. "It's clear that the economy began to slow there in the second half and I believe the trade tensions between the United States and China put additional pressure on their economy."......MORE