Friday October 28th

U.S. stock markets index futures were lower Friday after disappointing Amazon earnings added to the already pressured Nasdaq index. Futures tied to the Nasdaq slid 0.7%. Dow Jones Industrial Average futures were up 90 points, or 0.3%. S&P 500 futures lost 0.2%. Amazon led the declines in premarket trading, plunging by 13% after the company posted weaker-than-expected quarterly revenue and issued disappointing fourth-quarter sales guidance. Apple shares were initially lower too in extended trading after the company reported weaker-than-anticipated iPhone revenue, but they have since reversed higher and were last up about 0.7%.The company still beat Wall Street estimates for quarterly earnings and revenue. Tech names were a dark cloud over the market once again on Thursday. The Nasdaq Composite lost 1.6%, due to a rout in Meta and other tech stocks following the Facebook-parent’s disappointing results. Meanwhile, the Dow rose 194.17 points, or 0.6%, for its fifth straight day of wins, helped by string earnings from members and GDP data that hinted that inflation may be waning. The stock market has fractured this week as investors dump technology shares following weak results and outlooks from Microsoft, Alphabet and Meta and rotate into economically-sensitive stocks that will benefit if the U.S. economy can skirt a recession. “The weight of tech in the S&P 500 painted a more negative picture of the market yesterday than was the actual reality, as most sectors of the market posted decent rallies or fell only modestly,” said Tom Essaye, president of Stevens Report Research. “Looking forward, we remain in the heart of earnings season and results will continue to dominate sector trade through the end of next week,” he said. “Outside of tech, it’s fair to say this earnings season is, so far, not as bad as feared.” The Dow and S&P are on pace to end the week higher by about 3% and 1.5%, respectively. The Nasdaq Composite set to finish lower by about 1%. Friday brings a quieter day for earnings. Oil companies Chevron and Exxon both outperformed expectations when reporting before the bell, sending shares up 2.5% and 2.4%, respectively. Dow futures turned positive shortly after the release of data from the Bureau of Economic Analysis that showed inflation was in line with expectations. Data focused on the health of consumers was better than anticipated. Hong Kong stocks plunged to its lowest levels since April 2009, leading losses in the Asia-Pacific as the Bank of Japan left its benchmark interest rate unchanged. The Hang Seng index in Hong Kong closed 3.66% lower at 14,863.06 after losing more than 4% earlier in the session, dragged by the Hang Seng Tech index falling 5.56%. In Australia, the S&P/ASX 200 fell 0.87% to 6,785.70. The Nikkei 225 in Japan fell 0.88% to 27,105.20, while the Topix was 0.34% lower at 1,899.05. The Japanese yen initially maintained 146-levels after the Bank of Japan kept rates at ultra-low levels, but later weakened past 147. South Korea’s Kospi was 0.89% lower at 2,268.40. In mainland China, the Shanghai Composite was 2.25% lower at 2,915.93 and the Shenzhen Component shed 3.24% to close at 10,401.84. Oil prices fell on Friday after top crude importer China widened its COVID-19 curbs, though benchmarks were poised for a weekly gain on supply concerns and surprisingly positive economic data. Brent crude futures dropped 50 cents, or 0.5%, to $96.46 a barrel by 1047 GMT, having climbed by 1.3% in the previous session. U.S. West Texas Intermediate (WTI) crude futures were down 78 cents, or 0.9%, at $88.30. Both benchmarks, however, were on course for a weekly rise, with Brent heading for a gain of about 3% and WTI about 4%. Gold fell nearly 1% on Friday as the dollar rose, with zero-yield bullion giving up gains from bets for a slowdown in monetary tightening later in the year as immediate focus turned to an impending rate hike next week. Spot gold was down 0.8% to $1,649.18 per ounce by 1218 GMT, while U.S. gold futures also dropped 0.8% to $1,653.10. The dollar index rose 0.2%, eroding the appeal of rival safe-haven gold, while also making it more expensive for overseas buyers.