iPhone trouble; Fed decision; Facebook's future

Apple warned investors in January that iPhone sales had taken a hit from an economic slowdown in China. CEO Tim Cook suggested Tuesday that the worst may be over, saying Chinese shoppers had responded to price cuts.

But modest price reductions may not be enough to compete with Chinese smartphone makers like Xiaomi and Huawei.

Huawei shipped 30 million phones in China in the first three months of the year, more than any other company and a 41% increase over the same period in 2018, according to research firm Canalys.

Apple (AAPL) sales in China in the first quarter plunged by 30% to 6.5 million phones — its worse decline in two years, according to Canalys.

2. Fed guidance: The Federal Reserve will announce its latest interest rate decision and policy update at 2:00 pm ET.

The US central bank is not expected to change rates, but investors will be paying close attention to Fed Chairman Jerome Powell's views on the economy.

After raising rates four times last year, the Fed took its foot off the gas in January. But rate cuts have been made unlikely by a very strong performance by the US economy in the first quarter. Global growth also appears to be recovering.

3. The future of Facebook: Facebook (FB) debuted a makeover for its main app on Tuesday that reflects the company's new emphasis on privacy.

"I know we don't exactly have the strongest reputation on privacy right now, to put it lightly," said CEO Mark Zuckerberg, acknowledging skepticism around the move. "I am committed to doing this well."

It's unclear if a new design and approach to privacy will usher in real change for the beleaguered company, or if it's just a new coat of paint.

Zuckerberg outlined principles he said the company is now focusing on, including private interactions, encryption, disappearing content and secure data storage.

He also said he would integrate Instagram and Whatsapp more closely. Investors are eager to understand how the changes will affect the company's advertising business.

4. Global market overview: US stock futures were higher.

Many stock markets around the world were closed for May Day. In Europe, London's FTSE 100 advanced 0.3%.

The S&P 500 eked out a fresh record close on Tuesday, gaining 0.1%. Google acted as a drag on the Nasdaq, which shed 0.8%. The Dow added 0.2%.

Deepening chaos in Venezuela continues to produce wild swings in crude oil prices.

Oil prices initially rallied on Tuesday as TV images depicted a violent uprising in Venezuela. But they have retreated as observers try to decipher whether opposition leader Juan Guaido will oust President Nicolas Maduro.

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5. Earnings and economics: AMC Networks (AMCX), Clorox (CLX), CVS Health (CVS), Estee Lauder (EL), Gannett (GCI), Garmin (GRMN), Hilton (HCYAX), Humana (HUM), Molson Coors Brewing (TAP), Royal Caribbean (RCL), trivago (TRVG) and Yum! Brands (YUM) will release earnings before the open.

The following companies are up after the close: Allstate (ALL), Avis Budget (CAR), Caesars Entertainment (CZR), Cheesecake Factory (CAKE), Fitbit (FIT), Hyatt Hotels (H), MetLife (MET), Prudential (PRU), Qualcomm (QCOM) and Square (SQ).

The Institute for Supply Management will release manufacturing data for April at 10 a.m. ET.

6. Coming this week:
Wednesday — Fed decision; Yum Brands (YUM) and CVS (CVS) earnings
Thursday — Bank of England policy update; Under Armour (UA) and Dunkin' (DNKN) earnings; weekly jobless claims; Caixin China manufacturing PMI
Friday — Jobs report; Eurozone inflation, Fiat Chrysler (FCAU) earnings

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