* Apple falls 8 pct after revenue falls first time in 13 years
* Twitter slumps 14.8 pct after revenue misses expectations
* Fed to release statement at 2 p.m. ET
* Futures down: Dow 38 pts, S&P 5 pts, Nasdaq 47.25 pts (Adds details, comment, updates prices)
By Tanya Agrawal
April 27 (Reuters) - Wall Street was set to open lower on Wednesday after Apple’s first revenue decline in 13 years stirred investor concerns regarding the health of corporate earnings ahead of a policy decision by the Federal Reserve.
Tech-heavy Nasdaq futures fell more than 1 percent, dragged down by disappointing results.
Dow component Apple’s shares were down 8 percent at $95.97 in premarket trading, while Twitter slumped 14.8 percent to $15.12 after its revenue missed expectations.
“That kind of miss is going to make people question if the corporate earnings as a whole is as strong as they think they are. I think it’s going to rattle confidence,” said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Massachusetts.
S&P 500 e-minis were down 5 points, or 0.24 percent, with 149,285 contracts traded at 8:31 a.m. ET. Nasdaq 100 e-minis were down 47.25 points, or 1.06 percent, on volume of 27,352 contracts. Dow e-minis were down 38 points, or 0.21 percent, with 23,357 contracts changing hands.
Investors are awaiting a Fed decision on rates at 2 p.m. ET (1800 GMT). No change in rates is expected but the Fed may signal its intention to tighten policy this year.
Economists polled by Reuters expect two increases this year but futures prices show traders do not expect rates to rise until late 2016, according to CME Group’s FedWatch.
“I don’t think the Fed is going to raise rates today but they are starting to lean towards the possibility of a hike and are going to buy themselves some insurance by saying that June is more possible than a lot of people ... think,” McMillan said.
The Fed next meets on June 14-15. While the labor market continues to gain strength, inflation remains below the central bank’s 2 percent target and mixed economic data could cloud the path to future rate hikes.
Oil hit its highest level this year on Wednesday, driven by a falling dollar and evidence of declining U.S. supply, putting the price on course for its strongest monthly performance since last April.
Disappointing earnings have slowed down a recent rally but the S&P continues to hold near the record high it set almost a year ago. The index has rallied 15 percent since February.
First-quarter earnings from S&P 500 components are expected to have fallen 7.1 percent from a year earlier, according to Thomson Reuters I/B/E/S. Of the 166 companies that have reported, 59 percent reported revenue above analyst expectations, just short of the average 60 percent since 2002.
Apple suppliers Skyworks, Cirrus Logic and Broadcom were down between 3 percent and 5.4 percent.
Facebook and PayPal are scheduled to report results after the close of market.
DreamWorks Animation soared 19 percent to $32.27 after the Wall Street Journal reported Comcast is in talks to buy the Hollywood studio owner. Comcast was up 1.7 percent at $62.10.
Ebay was up 1.3 percent at $24.80 after raising its full-year revenue forecast, while Boeing fell 0.9 percent to $132 after a drop in quarterly profit.
Chipotle was down 4.7 percent at $425.01 after a bigger-than-expected drop in quarterly comparable sales prompted a spate of price target cuts. (Reporting by Tanya Agrawal; Editing by Don Sebastian)