U.S. stock futures were poised for losses on Friday, after Amazon.com Inc. added to a batch of disappointing results from big names in the tech sector.
Investors were also waiting for data including an inflation indicator closely watched by the Federal Reserve. Treasury yields were rising.
How are stock-index futures trading?
S&P 500 futures
fell 21.25 points, or 0.6%, to 3,797.25
- Advertisement -
Dow Jones Industrial Average futures
fell 28 points, or less than 0.1% to 32,047
fell 114.25 points, or 1%, to 11,121.25
On Thursday, stocks finished mixed, as the Dow industrials
rose 194.17 points, or 0.6%, to finish at 32,033.28, the S&P 500 index
fell 23.30 points, or 0.6%, to 3,807.30, and the Nasdaq Composite
tumbled 178.32 points, or 1.6% to 10,792.67.
What’s driving markets?
A string of earnings disappointments from Big Tech this has weighed on investors this week, with Amazon.com
joining Microsoft Corp.
and Meta Platforms Inc.
in disappointing the market
Shares of the e-commerce giant fell 11% in premarket trading after it predicted slower holiday sales and profit as its cloud growth slowed.
“The change in cash generation for Amazon indicates that the pandemic turned out to be bad for the business as it spent too much on expanding capacity that could not be maintained,” said Peter Garnry, head of equity strategy at Saxo Bank.
“The outlook for Q4 was what terrified investors with the retailer guidance operating income in the range $0-4 billion vs est. $4.7 billion and revenue of $140-148 billion vs est. $155.5 billion.”
proved a bright spot, after the iPhone maker’s revenue and earnings topped forecasts, helped by record back-to-school sales of Macs. Shares were up nearly 0.9% in premarket trading.
And Intel Corp.
shares climbed 4% in premarket on an earnings beat. The chip maker said it would cut costs by $3 billion next year, and lay off employees, as it trimmed its outlook again.
Economic data will swing into focus for Friday, starting with the September PCE price index, which is the Fed’s preferred measure of inflation, due at 8:30 a.m. Eastern, along with real disposable income and consumer spending.
Thursday’s third-quarter GDP showed core PCE for the quarter coming in at 4.5% annualized. Also in focus, the employment cost index for the third quarter is set for release at the same time.
The final read of the University of Michigan consumer sentiment index for October and five-year inflation expectations — also closely watched by the Fed — are due at 10 a.m. Eastern, alongside pending home sales for September.
Bond yields were higher, with that of the 10-year Treasury note
up 6 basis points to 4.004%, while the yield on the 2-year Treasury note
rose 3 basis points to 4.366%. The ICE Dollar
which measures the greenback against a basket of major rivals, was up 0.2%.