Nasdaq 100 futures were lower on Friday after disappointing earnings from Amazon added to the already pressured index.
Nasdaq-linked futures fell 1%. Dow Jones Industrial Average futures were down 0.1% and S&P 500 futures were down 0.6%.
Amazon led the declines in pre-market trading, falling 13% after the company published Weaker-than-expected quarterly revenue and issued disappointing fourth-quarter sales guidance.
Apple shares were also initially lower in extended trading after the company reported iPhone revenue weaker than anticipatedbut they have since reversed to the upside, last time rising by around 0.7%. The company still beat Wall Street estimates for quarterly earnings and revenue.
Tech names were a dark cloud over the market once again on Thursday. The Nasdaq Composite lost 1.6%, as Meta and other tech stocks fell after disappointing results from parent Facebook. Meanwhile, the Dow rose 194.17 points, or 0.6%, for a fifth straight day of gains, helped by GDP data that hinted inflation may be slowing.
The stock market fractured this week as investors dumped tech stocks following weak results and outlooks from Microsoft, Alphabet and Meta and turned to economically sensitive stocks that stand to benefit if the US economy can weather a downturn. recession. The Dow Jones and S&P are on track to end the week up around 3% and 1.5%, respectively. The Nasdaq Composite will finish down about 1%.
SoFi’s chief investment strategist Liz Young said the pain investors are feeling in earnings was inevitable and necessary to move forward in the current cycle.
“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 earnings goes, then the economy goes. So this is finally the part where we’re seeing earnings take a hit and I don’t think it’s a It’s a mistake that it’s the technology that gets affected. The technology is what’s been under pressure in this market from the beginning.”
“This is just another check on the list of things we need to get through before we can really get this part of the cycle done,” he added.
Friday brings a quieter day for earnings. As investors digest the tech bloodbath, they will have Chevron and Exxon Mobil on deck before the bell rings, as well as AbbVie and Colgate-Palmolive.
Turning to economic data, traders eagerly await the personal consumption expenditures price index, the Fed’s preferred gauge of inflation, as well as consumer confidence and pending home sales.
