Geoffrey Smith

Investing.com — Disappointing earnings from Apple (NASDAQ:) and Amazon (NASDAQ:) are set to weigh on the US stocks when they open later. World leaders to send on Rome for a G 20 summit, but remain far apart on forging a consensus on climate policy ahead of next week’s COP26 meetings. They’re closer together on the issue of global tax. Fears that the ECB would reduce stimulus are driving eurozone bond yields to their highest level in more than a year. Facebook (NASDAQ) has confirmed that it will be rebranded as Meta and Big Oil is the day’s earnings leader. What you should know about financial markets, Friday, October 30, 2013.

1. Amazon, Apple Disappoint

Both Amazon and Apple both suffered disappointments in their quarter earnings on Thursday. Premarket trading saw both stocks fall.

Apple’s sales were hit by supply chain problems, and CEO Tim Cook warned that the coming holiday quarter may be even worse in this regard.  This issue was previously reported in unconfirmed news reports.

Amazon’s problems were concentrated in higher input costs, notably for labor, which hurt profit margins at the core e-commerce business.

Amazon Web Services on the other hand, produced decent amounts of money. Even so, earnings per share where some 25% below analysts’ forecasts, in a rare and marked disappointment one of the market’s heavyweights.

2. Pricing of Personal Income, and the Spending

The last inflation- related economic data before the Federal Reserve’s next policy meeting are due at 8:30 AM ET (1030 GMT), how long with figures for personal income and personal spending in September.

In September core prices for consumer goods are expected to increase by 0.2%, down 0.3% from August and 0.7% in April. The peak was 0.7 in April. Expectedly, the annual rate of core PCE inflation has fallen to 3.7% from 3.6% last month.

The PCE Price Inflation Index (the preferred measure by the feds) is used to determine inflation. These numbers are coming a day following further indicators of labor market strength. Initial jobless claims dropped to an all-time low post-pandemic of 281,000.

3. Big Tech drags stock prices lower, Oil majors pay attention

US stock markets will open lower than expected later due to disappointment with earnings from Apple, Amazon and Starbucks (NASDAQ:), which also saw revenue fall short of expectations.

At 6:15 AM ET they were down 45 points, or 0.1%. NASDAQ 100 futures fell 0.9%.

The stocks likely to focus on later are Facebook (which confirmed Thursday that it would rebrand as Meta) and major oil and gas companies. Exxon Mobil (NYSE: Chevron (NYSE:) Both companies report earnings.

4. G20 will sign tax deal

For the annual G 20 summit, world leaders gather in Rome, Italy. At least, some of them do – Chinese president Xi Jinping is not attending.

This alone will ensure nothing substantive is accomplished politically.

The new minimum rate represents a major plank in the US Democrats’ plans to increase corporate taxes to help pay for a spending bill that has been severely cut. President Joe Biden said on Thursday he had agreed a framework for the bill which leaves its overall price add around $1.85 trillion, having shed much of the party’s list of election promises.

5. Eurozone bonds feel the jitters

The Eurozone’s government bond market got the jitters because Christine Lagarde (CEB president) had only partially reacted to suggestions that interest rates might rise in next year.

At 1.15% the 10-year Italian government bond yield climbed 16 basis points, reaching a new high 14 months later. The benchmark Greek bond yields followed the trend, highlighting the extent to which the markets have been supported over the past 18 months by unprecedented levels of ECB support.

Sentiment wasn’t helped by a sharp overshoot in Eurozone consumer prices in October: preliminary data showed inflation running at 4.1% on the year, up from 3.4% in September and above the 3.7% expected.