Nasdaq 100 futures fell Thursday night after an extravaganza of big-tech earnings with disappointments from Amazon and Apple.
Futures tied to the tech-heavy index fell 1.5%, while Dow Jones Industrial Average futures fell 0.4% and S&P 500 futures fell 0.8%.
The moves are a major reversal for stocks that posted large gains in regular trading. The Dow rose 614 points, or 1.9%, and the S&P 500 rose 2.5%. The tech-heavy Nasdaq Composite rose 3.1%.
Investors’ big focus on Thursday night was Amazon, whose shares fell about 10% in extended trading after reporting a surprise loss thanks to its investment in Rivian and a weak second-quarter sales forecast.
Apple initially got a boost after a big profit decline, but turned down after CFO Luca Maestri said supply chain constraints could hurt revenue in the fiscal third quarter. Shares fell more than 3% in after-hours trading.
Despite Thursday’s gains, stocks still have a long way to go to end the month green. The Dow is down 2.2% this month and the S&P 500 is down 5.4%. The Nasdaq faces its worst month since March 2020, down 9.5%. Friday is the last trading day of the month.
This was one of the busiest weeks of the earnings season and a particularly intense one for technology companies, which impacted investor sentiment throughout the week.
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Intel also reported earnings Thursday night. The stock fell more than 3% in extended trading after the company issued weak guidance for the fiscal second quarter. Robinhood shares fell more than 8% after the close after the company reported a bigger-than-expected loss, falling revenue and a drop in monthly active users.
Gains aside, investors remain concerned about slowing global growth, rising inflation and the US Federal Reserve’s tightening of monetary policy.
On Thursday, the Commerce Department reported that first-quarter U.S. gross domestic product unexpectedly fell 1.4% year over year, compared with the 1% growth expected by economists polled by Dow Jones.
On Friday, investors will be looking for new personal consumption expenditure (PCE) data. Core PCE is the Federal Reserve’s primary indicator of inflation. The University of Michigan Consumer Sentiment Index will also be released at 10:00 a.m. ET.
Friday brings a quieter earnings day to end the week. Honeywell, Bristol-Myers Squibb are on deck in front of the bell. The energy companies Exxon Mobil, Chevron and Phillips 66 will also report.