Dow futures dip on trade concerns despite Apple boost

By Amy Caren Daniel

(Reuters) - Dow futures dipped on Wednesday due to fears that the trade war between the United States and China was escalating, while Nasdaq futures got a lift from Apple's stellar results that helped ease concerns over the future growth of the tech sector.

The Trump administration plans to propose tariffs of 25 percent, instead of the initially proposed 10 percent, on $200 billion worth of imported Chinese goods. Beijing vowed to retaliate if the United States slapped further tariffs.

Shares of trade-sensitive companies fell. Boeing and Caterpillar both declined 0.6 percent in premarket trading.

"There is a big additional tariff that is being weighed and could be put into place at any moment, which is a concern," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin.

Apple jumped 4.1 percent to $198.17, an all-time high, after posting quarterly results that far exceeded Wall Street targets, helped by its pricey iPhone X, and forecasting revenue above expectations for the fall.

The results come as disappointing reports from companies such as Facebook and Netflix - part of the so-called FAANG group stocks - have fanned worries over the growth of high-flying technology companies.

"Apple stock move and its results will be positive, but whether that is a long-lasting effect on the tech sector is a question that cannot be answered," Frederick said.

FAANG members Facebook, Netflix, Amazon.com and Google-parent Alphabet were trading up between 0.10 percent and 1.3 percent.

At 8:40 a.m. ET, Dow e-minis were down 29 points, or 0.11 percent. S&P 500 e-minis were down 0.25 points, or 0.01 percent and Nasdaq 100 e-minis were up 17 points, or 0.23 percent.

Oil prices fell nearly 2 percent, weighing on energy companies, due to an industry report that U.S. crude stockpiles rose unexpectedly and on higher OPEC production. [O/R]

Of the 301 S&P 500 companies that have reported so far, 81 percent of them have topped profit estimates - so far the highest beat rate on record, dating back to 1994, according to Thomson Reuters I/B/E/S.

Among stocks, Akamai Technologies dropped 4.8 percent after its forecast for third-quarter revenue largely missed expectations.

Sprint gained 2 percent after the wireless carrier's quarterly profit topped analysts' estimates, helped by a surprise growth in wireless subscribers.

Campbell Soup was up 3.3 percent. Reuters reported activist hedge fund Third Point is meeting with some large shareholders to seek support for changes at the company.

Also in focus is the Federal Reserve, which is expected to keep interest rates unchanged in an announcement at 2 p.m. ET (1800 GMT) at the end of its meeting. The market expects another two rate hikes this year.

(Reporting by Amy Caren Daniel in Bengaluru; Editing by Shounak Dasgupta)