Nasdaq futures slide as Amazon and Apple retreat after earnings
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Trader working at the New York Stock Exchange, New York (NYSE), Manhattan, New York. April 11th, 2022.
Andrew Kelly | Reuters
After a flurry of Big Tech earnings and disappointments by Apple and Amazon, the Nasdaq 100 futures dropped Thursday night.
Futures tied to the tech-heavy index fell 2%, while Dow Jones Industrial Average Futures slid 0.3% and S&P 500 futures retreated 1%.
These moves represent a significant reversal of stocks’ fortunes, who made an impressive comeback Thursday in regular trading. The Dow rose 614 points, or 1.9%, and the S&P 500 advanced 2.5%. Tech-oriented Nasdaq Composite rose 3.1%.
Amazon shares plunged by 10% after extended trading. This was Amazon’s main focus. reporting a surprise lossIt made a significant investment in Rivian. The company also issued weak revenue guidance during the second quarter.
Apple was initially given a boost after the incident. a big earnings beat but turned lower after CFO Luca Maestri said supply chain constraints could hinder fiscal third-quarter revenue. After hours, shares fell more than 3 percent.
Stocks still have some work to do before they are green for the month, despite Thursday’s gains. The Dow is off by 2.2% for the month and the S&P 500 is down 5.4%. With a 9.5% drop in its monthly average, the Nasdaq could have its worst month since March 2020. Friday will mark the end of trading for this month.
It has been one the busiest weeks of earnings season, and it was especially intense for tech companies. This week saw a surge in investor sentiment.
Intel released earnings on Thursday evening. After the earnings announcement, Intel stock dropped more than 3% during extended trading. issued weak guidance for its fiscal second quarter. Robinhood shares plunged more than 8 percent after Robinhood reported that it had received a report. wider-than-expected lossA decrease in active monthly users and shrinking revenues.
Investors are still concerned by slowing global growth and rising inflation, as well as the Federal Reserve’s tightening of monetary policy.
U.S. Commerce Department reports Thursday gross domestic product unexpectedly declined in the first quarter by 1.4% from the previous year, compared to the 1% growth expected by economists surveyed by Dow Jones.
Investors will be looking for new data Friday on personal consumption expenditures. The Federal Reserve’s main inflation indicator is Core PCE. Also, at 10:00 ET, University of Michigan’s Consumer Sentim Index will be available.
Friday will see a calmer earnings day to close the week. Before the bell, Honeywell and Bristol-Myers Squibb will be on hand. Exxon Mobil Energy, Chevron, and Phillips 66 are also expected to report.
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