December 6, 2022

Nasdaq futures drop after weak Amazon guidance adds pressure to technical defeat

Nasdaq futures drop after weak Amazon guidance adds pressure to technical defeat

Nasdaq 100 futures fell on Friday after Amazon’s disappointing earnings were added to the already compressed index.

Nasdaq-related futures fell 1%, the Dow Jones Industrial Average fell 0.1% and S&P 500 futures lost 0.6%.

Amazon led the declines in pre-market trading, dropping 13% after the company’s publication Quarterly revenue is weaker than expected It issued disappointing fourth-quarter sales guidance.

Apple shares were also lower initially in extended trading after the company announced iPhone revenue weaker than expectedbut has since rebounded, last rising about 0.7%, and the company still beat Wall Street estimates for quarterly earnings and revenue.

Technical names were a dark cloud over the market again on Thursday. The Nasdaq Composite lost 1.6%, due to a defeat in Meta and other technology stocks after Facebook’s disappointing results. Meanwhile, the Dow rose 194.17 points, or 0.6%, for a fifth straight day of gains, helped by GDP data that hinted that inflation may be waning.

The stock market crashed this week with investors dumping technology stocks after results and poor prospects from Microsoft, Alphabet and Meta, and trading in economically sensitive stocks that will benefit if the US economy can avoid a recession. The Dow and Standard & Poor’s are on track to finish the week up about 3% and 1.5%, respectively. The Nasdaq Composite will end down about 1%.

Liz Young, SoFi’s head of investment strategy, said the pain that dividend investors are feeling is inevitable and necessary to move forward in the current cycle.

“We’ve been waiting for that to happen,” she said on CNBC’s “Closing Bell: Overtime.” “Usually there is a chain of events: first the market goes, then profits go, then the economy goes. So this is finally the part where we see profits get hit and I don’t think it’s wrong for technology to take a hit the most. It’s technology that has come under pressure in this market. Since the beginning. “

“This is just another check on the list of things we need to get past before we can do that with this part of the cycle,” she added.

Friday brings a quieter day for earnings. As investors absorb the bloodbath in technology, they will have Chevron and ExxonMobil on deck before the bell as well as AbbVie and Colgate-Palmolive.

In economic data, traders are looking at the PCE price index, the Fed’s preferred inflation measure, as well as consumer confidence and pending home sales.