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U.S. stocks opened lower on Wednesday, weighed down by losses in Apple shares following disappointing results. The iPhone maker’s shares tumbled 5.4%, shaving off about 5 points off the S&P 500, while the 1.8% drop in the technology sector is mostly attributed to the decline in the stock. The S&P 500 opened 7 points, or 0.3%, lower at 2,112. The Nasdaq Composite dropped 49 points, or 1%, to 5,158. The Dow Jones Industrial Average began the day down 46 points, or 0.3%, to 17,870.

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Investors have put more money into exchange-traded funds than hedge funds for the first time, according to research firm ETFGI. There was $2.971 trillion invested in the 5,823 exchange-traded products listed globally at the end of the second quarter, ETFGI said in a news release Tuesday. Meanwhile, the global hedge-fund industry had attracted $2.969 trillion. “With the positive performance of equity markets many investors have been happy with index returns and fees,” ETFGI said. ETFs and other exchange-traded products are mostly index trackers. Assets in ETFs had been expected to top assets in hedge funds during the second quarter.

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Apple Inc. was downgraded to market perform from outperform Wednesday morning, marking the first major downgrade so far after the iPhone maker’s third-quarter earnings report late Tuesday. Analyst Tim Arcuri also lowered his price target on the stock to $130 from $140, citing mounting China demand concerns and supply-side checks that indicate iPhone builds are down for the first time since the launch of the iPhone 6. Shares of Apple fell more than 7% in premarket trade, putting them on track to open around $121.45. On a conference call with analysts late Tuesday, Apple CEO Tim Cook said he remained confident in the China region despite broader economic concerns. However, Arcuri said iPhone units were light even when adjusted for channel inventory. “Normally, this would not concern us but evidence of a widespread demand reset from China is mounting,” he said. Apple sold 47.5 million iPhones, which was above the company’s expectations but below the higher-range of analyst estimates, some of which were calling for sales around or above 50 million units.

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Biotechnology company Xoma Corp.’s stock crashed 81% in premarket trade Wednesday, after the company said a late-stage trial of its treatment (gevokizumab) for Behcet’s disease in the eye missed the primary endpoint. The stock is on course to trade below $1 after the open for the first time. Premarket volume of 6.4 million shares is already above the full-day average of 4.2 million shares. The company said it would continue to work with its partner Servier to thoroughly analyze the trial data to understand gevokizumab’s impact. “Although the study did not achieve its main objective, we did see signals of drug activity such as preserved visual acuity, less severe ocular exacerbations and a reduced incidence of reported macular edema in patients treated with gevokizumab,” Chief Medical Officer Paul Rubin said in a statement. Prior to the selloff, the stock had run up 21% over the past three months, while the S&P 500 had gained 0.5%.

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WASHINGTON (MarketWatch) — Home prices rose a seasonally adjusted 0.4% in May, the Federal Housing Finance Agency said Wednesday. Compared to May 2014, prices were up 5.7%, said FHFA, which tracks deals involving mortgages backed by Fannie Mae and Freddie Mac.

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Benchmark initiated coverage of Cinemark Holdings Inc. with a buy rating and a $49.13 price target on Wednesday. Cinemark, currently trading at $40.39, operates movie theaters in 41 U.S. states, 13 countries across Latin America and a couple theaters in Taiwan. Benchmark analyst Mike Hickey wrote in a note that the company’s strong discipline and international growth have enabled relative outperformance in the domestic cinema market. Hickey said the company’s shares offer investors domestic and international exposure to the theatrical box office. By the end of this year’s first quarter, the theater company was the third largest domestic network with 4,498 screens, according to Hickey. Regal Entertainment Group was No. 1 and AMC Entertainment Holdings Inc. No. 2. Cinemark shares are up 14% in the year to date, while the S&P is up only 3%.

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Home Depot Inc. announced Wednesday a deal to buy maintenance and repair products seller Interline Brands Inc. for $1.625 billion in cash. The deal is expected to close during Home Depot’s fiscal third-quarter ending Nov. 1, and add to the home improvement retailer’s earnings in fiscal 2015. “Interline is a well-run company that has achieved impressive financial results over the last few years,” said Home Depot Chief Executive Craig Menear. “With their seasoned leadership team, we will enhance our ability to serve the Pro–both in the store and at any desired location outside of the store–driving significant value for our customers and shareholders.” Home Depot’s stock, which was little changed in premarket trade, has climbed 8.5% year to date, while the Dow Jones Industrial Average has gained 0.5%.

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Campbell Soup Co. on Wednesday adjusted its sales and earnings outlook for fiscal 2015, as well as its long-term targets, in an update released ahead of an investor meeting. The company said it will change its reporting segments in the first quarter of fiscal 2016 to reflect a new structure, which organizes the food company into three divisions housing American meals and beverages, global biscuits and snacks and fresh food. The latter includes its retail refrigerated soups. The company said it is achieving cost savings faster than expected and now expects about $75 million worth in fiscal 2015. The company expects 2015 sales to fall 1% due to the impact of the strong dollar. EPS is now expected to range from $2.43 to $2.46, up from a prior outlook of $2.32 to $2.38. In the long term, Campbell is expecting organic sales growth of 1% to 3%, down from a prior target of 3% to 4%, reflecting the current difficult conditions in the food industry. Shares are up 7.9% in the year so far, while the S&P 500 has gained about 3%.

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Boeing Co.’s stock climbed 1.2% in premarket trade Wednesday, after the aerospace giant beat second-quarter profit and sales expectations, which offset a lowered earnings outlook. Net earnings for the quarter ended June 30 slipped to $1.11 billion, or $1.59 a share, from $1.65 billion, or $2.24 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came in at $1.62, above the FactSet consensus of $1.37. Revenue rose 11% to $24.54 billion, above the FactSet consensus of $24.31 billion, with an 18% jump in commercial airplane sales to $16.88 billion beating expectations of $16.8 billion. For 2015, Boeing cuts its adjusted EPS outlook to a range of $7.70 to $7.90 from $8.20 to $8.40, as its operating margin view was lowered to 9% from $9.5% to 10%. The company affirmed its full-year revenue outlook of $64.5 billion to $65.5 billion. “Overall, our outlook for the second half of the year remains positive,” said Chief Executive Dennis Muilenburg. “On the tanker program, we are investing the necessary resources to keep this vitally important program on schedule for our customer.” The stock has run up 12% year to date through Tuesday, while the Dow Jones Industrial Average has tacked on 0.5%.

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The Coca-Cola Co. said Wednesday it had net income of $3.1 billion, or 71 cents a share, in the second quarter, up from $2.6 billion, or 58 cents a share, in the year-earlier period. Adjusted per-share earnings came to 63 cents, ahead of the FactSet consensus of 60 cents. Revenue came to $12.2 billion, down 3% from $12.6 billion a year ago, but ahead of the FactSet consensus of $12.1 billion. Global volumes were up 2% in the quarter, while the drinks giant gained volume share in the non-alcoholic ready-to-drink beverage category. The strong dollar shaved 11 points off operating income in the quarter, and is expected to remain a headwind for the rest of the year. Shares were slightly lower in premarket trade, and are down 2.4% in the year so far, while the Dow Jones Industrial Average has gained 0.5%.

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