U.S. futures are indicating a sharply lower open this Monday morning, with the Dow Industrials poised to drop 120 points at the open.
Last week, stocks ended mixed with weakness seen in the Nasdaq, while the Dow added 1.4% and the S&P 500 tacked on 0.6%.
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There's concern about a 10% pullback over the past few days in Apple (NASDAQ:AAPL) shares, which carry much weight in both the Nasdaq and S&P 500.
Apple shares closed at $572.98 on Friday, marking a significant drop over the past two weeks from a record intraday high of $644 on April 10. The decline has wiped out more than $56 billion in market value for Apple, and there has been conviction behind the selling, too, with volume in Apple shares spiking.
Now investors await Apple's earnings report tomorrow night, with some concern that the new iPad costs too much money to manufacture, which might cut into margins.
Wall Street is looking for earnings of $10 on revenue of $36.63 billion.
American Airlines heads to federal court today to convince a bankruptcy judge that it must break labor agreements with thousands of workers if it wants to survive as a stand-alone airline. US Airways (NYSE:LCC) struck a deal Friday with three of American's largest unions to win their support for a merger of US Airways and American.
The merger would save more than 6,000 union jobs, which is about half of the jobs American wants to eliminate. If the carriers do merge, it is likely passengers would face higher ticket prices as the nation would be left with just four major airlines.
US Airways shares closed at $9.34 on Friday.