Nasdaq 100 futures were lower on Friday after disappointing earnings from Amazon added to the already pressured index.
Nasdaq-linked futures fell 0.84% Dow Jones Industrial Average futures were fractionally lower and S&P 500 futures lost 0.53%.
Amazon led decliners in extended trading, after the company reported weaker-than-expected quarterly revenue and issued disappointing sales guidance for the fourth quarter.
Apple shares were also initially lower after the company reported weaker-than-expected iPhone revenue, but have since reversed further. The company still beat Wall Street estimates for quarterly earnings and revenue.
Tech names were also a dark cloud over the market in regular trading. Earlier in the day, the Nasdaq Composite lost 1.6%, as the Meta and other tech stocks fell, and the S&P 500 fell 0.6%. Meanwhile, the Dow rose 194.17 points, or 0.6%, for its fifth straight day of gains, helped by GDP data that hinted inflation may be easing.
SoFi’s chief investment strategist Liz Young said the pain investors are feeling in earnings was inevitable and necessary to move forward in the current cycle.
“We’ve been waiting for this to happen,” he said on CNBC’s “Closing Bell: Overtime.” “Usually there’s a sequence of events: first the market comes out, then earnings come out, then the economy comes out. So finally, that’s the part where we see earnings take a hit and I don’t think it’s a mistake that “it affects technology. Technology is what has been under pressure in this market from the beginning.”
“This is just another check off the list of things we have to get through before we can really finish this part of the cycle,” he added.
The Dow and S&P are poised to end the week up about 3% and 1.5%, respectively. The Nasdaq will end slightly lower.
Friday brings a quieter day for earnings. As investors digest the tech bloodbath, they’ll have Chevron and Exxon Mobil on deck before the bell, as well as AbbVie and Colgate-Palmolive.
In economic data, traders look forward to the Personal Consumption Expenditure Price Index, the Federal Reserve’s preferred gauge of inflation, as well as consumer sentiment and pending home sales.