The Dow Jones Industrial Average (DJINDICES:^DJI) had fallen more than 35 points as of 11:30 a.m. EDT. AT&T (NYSE:T) lost 0.3% alongside its index, while shares of tech stocks Apple (NASDAQ:AAPL) and Skyworks Solutions (NASDAQ:SWKS) surged.
Factory orders come in better than expected
The U.S. Census Bureau this morning said factory orders rose 0.7% on a month-over-month basis in April, better than the 0.5% economists had anticipated.
Although factory order data isn't considered the most vital of economic indicators, this update suggests the U.S. economy may be doing better than otherwise expected, as businesses and consumers boost their spending.
AT&T cuts earnings outlook
Wireless giant AT&T boosted its full-year revenue guidance on Tuesday, but warned that earnings per share could come in lower than analysts anticipated. AT&T said it expects to add at least 800,000 postpaid subscribers in the second quarter, many of whom may purchase a smartphone using one of AT&T's new financing programs.
AT&T's management believes that will lead to higher revenue in 2014, but only expects EPS growth in the middle single digits.
Skyworks raises guidance
Skyworks Solutions was likewise affected by guidance on Tuesday, rising more than 4.6% in early trading. Skyworks Solutions now expects to report earnings per share of $0.80 in the current quarter, far better than the $0.73 analysts had anticipated.
Skyworks said it was benefiting from the growth of the "Internet of Things," as Skyworks semiconductors are seeing greater demand. In addition, it cited a joint venture with Panasonic as contributing to its better than expected financial results.
Apple gains in the wake of WWDC
Shares of Apple rose nearly 1% in early trading as investors reacted to the news coming from its Worldwide Developer Conference. Apple unveiled yesterday the next iterations of its operating systems OS X and iOS.
OS X 10.10, Yosemite, includes a number of features that make it better suited to a world of cloud-based services. In particular, Apple has enhanced its email app and created iCloud Drive, a direct competitor to popular online file hosting services such as Dropbox. At the same time, Apple has included features that make its Macs work well with nearby iDevices. Owners of iPhones will be able to, for example, use their Macs to make a call.
iOS 8 adds many features to Apple's mobile devices, such as the ability to install third-party keyboards. Families that own multiple iDevices will also benefit, as Apple will now allow families to share iTunes purchases across their different iTunes accounts.