* Apple falls more than 2 pct on demand worries
* Earnings season picks up this week
* Transocean rises as Icahn acquires stake
* Futures down: S&P 1.2 pts, Dow 13 pts, Nasdaq 12.75 pts
By Leah Schnurr
NEW YORK, Jan 14 Wall Street was set for a
weaker open on Monday as shares of Apple were hit by demand
concerns, while investors faced a busy week for corporate
Apple slid more than 2 percent in premarket trade
after a report that the tech company has cut orders for LCD
screens and other parts for the iPhone 5 this quarter due to
weak demand. The stock was down 2.5 percent at $507.00, off its
Apple supplier Cirrus Logic tumbled 4.8 percent to
$30.05, while Qualcomm lost 1.6 percent to $63.88. The
S&P 500 and Dow were poised to open only modestly lower, but the
Nasdaq looked set to fare worse as Apple weighed.
Earnings season picks up the pace this week with reports
expected from companies including Goldman Sachs, Bank of
America, Intel and General Electric.
Overall earnings are expected to grow by just 1.9 percent in
this reporting period, according to Thomson Reuters data.
Thirty-eight S&P 500 companies are due to report results this
"I think there's going to be more misses than hits in terms
of revenue and margins. It's going to be a little bit light this
earnings season compared to the last one," said Peter Cardillo,
chief market economist at Rockwell Global Capital in New York.
"But the underlying factor is that there's economic growth
and that the global economy is picking up."
Investors will also be watching Federal Reserve Chairman Ben
Bernanke, who will be speaking on monetary policy, recovery from
the global financial crisis and long-term challenges facing the
American economy at 4 p.m. (2100 GMT).
Top Fed official Charles Evans said earlier on Monday the
U.S. economy is expected to grow by 2.5 percent in 2013,
improving to 3.5 percent growth in 2014.
S&P 500 futures fell 1.2 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures fell 13
points, and Nasdaq 100 futures were down 12.75 points.
Appliance and electronics retailer Hhgregg Inc cut
its same-store sales forecast for the full year.
PPG Industries fell 1.5 percent to $139.99 after it reported
Transocean Ltd has disclosed that billionaire
activist investor Carl Icahn has acquired a 1.56 percent stake
in the offshore rig contractor and is looking to increase that
holding. Its shares rose 3.2 percent to $55.80.
Hewlett-Packard rose 1.8 percent to $16.45 after
JPMorgan raised its price target to $21 from $15.
Boeing could come under renewed pressure after
Japan's transport ministry launched an investigation into what
caused two fuel leaks on a 787 Dreamliner jet owned by Japan
Airlines Co. U.S. transportation
officials have also said they will take a comprehensive look at
the plane to ensure there were no flaws.
United Parcel Service Inc said it would drop its 5.2
billion euro ($7 billion) bid for Dutch delivery firm TNT
Express on the expectation of an EU veto. UPS was up
0.4 percent at $78.25 in light volume.