April 27, 2016 / 11:32 AM / 2 years ago

US STOCKS-Futures dragged down by tech earnings; Fed eyed

* Futures down: Dow 33 pts, S&P 5 pts, Nasdaq 48.5 pts

By Tanya Agrawal

April 27 (Reuters) - U.S. stock index futures were lower on Wednesday after Apple’s first revenue decline in 13 years stirred investor concerns ahead of a policy decision by the Federal Reserve.

* Tech-heavy Nasdaq futures fell more than 1 percent, dragged down by disappointing results by tech giants.

* Apple shares were down 7.5 percent at $96.52 in premarket trading, while Twitter slumped 14.1 percent to $15.25 after its revenue missed expectations.

* Facebook and PayPal are scheduled to report results after the close of market.

* Investors are awaiting a Federal Reserve 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.

* 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.

* DreamWorks Animation soared 21.8 percent to $33.02 after the Wall Street Journal reported Comcast is in talks to buy the Hollywood studio owner. Comcast was up 1.4 percent at $61.89.

* Ebay was up 1.1 percent at $24.75 after raising its full-year revenue forecast.

Chipotle was down 5.8 percent at $421.01 after a bigger-than-expected drop in quartely comparable sales prompted a spate of price target cuts.

Futures snapshot at 7:10 a.m. EDT:

* S&P 500 e-minis were down 5 points, or 0.24 percent, with 126,577 contracts traded.

* Nasdaq 100 e-minis were down 48.5 points, or 1.09 percent, on volume of 23,269 contracts.

* Dow e-minis were down 33 points, or 0.18 percent, with 19,840 contracts changing hands. (Reporting by Tanya Agrawal)

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