Nasdaq 100 futures fell on Friday after disappointing Amazon earnings added to an already-under-pressure index.
Nasdaq-linked futures fell 1%, Dow Jones Industrial Average futures fell 0.1%, and S&P 500 futures fell 0.6%.
Amazon led declines in premarket trading, falling 13% after the company’s announcement. weaker than expected quarterly revenue and issued disappointing sales guidance for the fourth quarter.
Apple shares were also lower in early extended trading after the company’s report weaker-than-expected iPhone revenuehowever, they have since moved higher and were last up about 0.7%. The company still beat Wall Street estimates for quarterly earnings and revenue.
Technical names were once again a dark cloud over the market on Thursday. The Nasdaq Composite lost 1.6% as losses in Meta and other tech stocks followed disappointing results from its Facebook parent. Meanwhile, the Dow rose 194.17 points, or 0.6%, on a fifth day of gains, helped by GDP data that signaled inflation may be easing.
The stock market was torn apart this week as investors dumped tech stocks after poor results and forecasts from Microsoft, Alphabet and Meta, turning to economically sensitive stocks that would benefit if the U.S. economy were to fall into recession. The Dow and S&P are set to end the week up about 3% and 1.5%, respectively. The Nasdaq Composite is set to drop about 1%.
Liz Young, head of investment strategy at SoFi, said the pain investors are feeling in earnings is inevitable and necessary to move forward in the current period.
“We’ve been waiting for this to happen,” he said on CNBC’s “Closing Bell: Overtime.” “Usually there’s a sequence of events: first the market goes, then the earnings go, then the economy goes. So this is the part where we finally see the earnings hit, and I think it’s not wrong for technology to take a hit. Most of all. Tech has been under pressure in this market from the beginning. thing.”
“It’s just another check off the list of things we have to go through before we can really deal with this part of the cycle,” he said.
Friday brings a quieter day for profits. Chevron and Exxon Mobil will be on deck before the bell, as well as AbbVie and Colgate-Palmolive, as investors digest the bloodbath in tech.
In economic data, traders look forward to the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditure Price Index, as well as consumer sentiment and expected home sales.
