Nasdaq futures fall after weak Amazon guidance adds pressure to tech channel

Traders on the floor of the NYSE, October 21, 2022.

Source: NYSE

Nasdaq 100 futures added to an already stressed index after lower Amazon earnings on Thursday night.

Nasdaq-linked futures fell 0.6%. Dow Jones Industrial Average futures fell 0.5%, and S&P 500 futures lost 0.07%.

Amazon led the decline in extended trading, with the company falling after posting Weaker-than-expected quarterly earnings and posted disappointing fourth-quarter sales guidance.

Apple shares initially fell after the company made the announcement Weaker-than-expected iPhone revenue, but they have since returned to higher levels. The company still beat Wall Street estimates on quarterly revenue and earnings.

Technical names are a dark cloud in the market even in conventional trading. Earlier in the day, the Nasdaq composite lost 1.6% and the S&P 500 fell 0.6% due to losses in the Meta and other tech stocks. Meanwhile, the Dow rose 194.17 points, or 0.6%, for its fifth straight day of gains, helped by GDP data that indicated inflation may ease.

Liz Young, SoFi’s head of investment strategy, said the pain investors will experience in earnings is inevitable and necessary to move forward in the current cycle.

“We’re waiting for it to happen,” he said on CNBC’s “Closing Bell: Overtime.” “Usually there’s a sequence of events: first the market goes, then the earnings go, then the economy goes. So this is where we finally see earnings hurt, and I don’t think there’s anything wrong with technology being hurt. Technology has been under pressure in this market since the beginning.”

“It’s another check on the list of things we need to get before we actually do this part of the cycle,” he added.

The Dow and S&P are on pace to end the week about 3% and 1.5% higher, respectively. The Nasdaq is set to end slightly lower.

Silver brings a peaceful day for income. As investors digest the bloodshed in tech, they’ll keep Chevron and ExxonMobil and APV and Colgate-Palmolive on deck before the bell.

Among economic data, traders look to the Personal Consumption Expenditure Price Index, the Federal Reserve’s preferred measure of inflation, as well as consumer sentiment and pending home sales.

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