Friday, April 29, here are five things you must know:
1. -- As big tech earnings recede, stock futures fall.
As investors examined the impact of a mixed set of big tech earnings on an already-fragile stock market prior to April, stock futures in the United States extended decreased.
Get Apple Inc. ReportMarch quarter earnings beat, which saw iPhone sales rise even amid Covid-triggered shutdowns in China, and ongoing disruptions in global supply chains, was clouded by a moderated near-term forecast. Amazon (AMZN) - Get Amazon.com, Inc. Report, meanwhile, posted a surprise first quarter loss, with rising expenses and the weakest revenue growth in a decade.
The reads add to a global equities crisis, which has experienced their largest monthly decline in two years, as data from the Commerce Department indicated a significant slowdown in the United States economy, even as interest rate traders continue to price-in 150 basis points worth of rate increases from the Federal Reserve over the next two policy meetings, beginning with next week''s in Washington.
The rate wagers have boosted the US dollar to its best monthly gains in seven years, although the greenback slowed in overnight trading against a basket of its global peers, with the advance reducing the impact of overseas revenue growth for S&P 500 firms.
In early Frankfurt trading, European markets were marked 1% higher, but they are still on pace to finish the month with a 1% drop, while the region''s MSCI ex-Japan index received a 2.4 percent increase for its best single-day increase in six weeks.
On Wall Street, futures contacts with the Dow Jones Industrial Average are indicating a modest 130point opening bell decline ahead of Chevron (CVX) - Get Chevron Corporation Reportand Honeywell (HON) - Get Honeywell International Inc. ReportWhile those linked the S&P 500 are priced for a 30 point move to the downside ahead of Exxon Mobil (XOM) - Get Exxon Mobil Corporation Report, Bristol-Meyers (BMY) - Get
Futures relating to the Nasdaq''s technology-focused Nasdaq are looking at a 145 point opening bell drop.
Apple Shares Slide As Supply Chain Warning Clouds Q2 Beat
Apple''s stock markets fell in pre-market trading after warning investors that chain interruptions, particularly around what CEO Tim Cook called the "Shanghai corridor," as well as the war in Ukraine, would fall between $4 billion and $8 billion from the actual quarter revenues.
The outlook wiped out an otherwise solid earnings gain from the second quarter, which showed the world''s largest software company earning more than $59.6 billion for the three months ending in March, the group''s fiscal second quarter.
Revenues increased by 6.7 percent from last year to $97.28 billion, surpassed analysts'' $93.9 billion estimates. Apple said iPhone revenues increased by 1.5 percent from last year to $50.57 billion, just ahead of the $48.5 billion Street forecast.
Apple reports that increase in China revenues increased by 3.4 percent from last year to $18.34 billion, but they fell 2.3 percent from the 21% growth forecasted in the last months of the year as government-mandated shutdowns slowed demand. Overall services revenues increased by 3.7 percent to $19.82 billion as the company''s installed base of devices surpassed 1.88 billion.
Apple''s stock was bounded 2.2 percent less during pre-market trading, indicating a $156.50 opening bell price.
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Amazon has sucked away after a good Q1 loss, causing a poor near-term forecast.
Amazon''s stock slowed in pre-market trading as the world''s largest online retailer lost a surprise first quarter loss, partly due to a $7.6 billion write down on its investment in EV maker Rivian (RIVN) - Get Rivian Automotive, Inc. Class A Report, while forecasting softer-than-expected near-term profit.
Amazon''s quarter loss was $7.56 per share, compared to a Street forecast of profits equaling $8 per share, with revenues increasing only 7% from last year -- the lowest growth rate in a decade -- to $116.3 billion.
Amazon said it expects operating incomes of between -$1 billion to +$3 billion on revenues in the range of $116 billion to $121 billion, compared to Refinitiv''s estimates of $125 billion.
The epidemic and the subsequent war in Ukraine have resulted in unusual growth and challenges, according to CEO Andy Jassy. "Today, our teams are largely focused on improving productivity and cost efficiencies throughout our fulfillment network. We know how to do this and have done it before.
In pre-market trading, Amazon''s stock was marked 8.5 percent lower, indicating a $2,540.00 opening bell price.
Intel shares a retreat while the Chip Sector falls.Increases Caution
Intel (INTC) - Get Intel Corporation Reportshares fell in pre-market trading after the world''s second largest chipmaker predicted softer-than-expected near-term profits that shook the market for the first quarter.
Intel beat that Street with a net profit of 887 cents per share in March, with revenues of $18.4 billion, but said that sales in June quarter would decrease to $18 billion as supply chain concerns and the ongoing shortage in semiconductor supplies continue to divert.
PC units are falling dramatically this year, despite Oppenheimer''s report. "Prolonged Covid lockdowns in China and inflationary pressures are likely to weaken consumer demand."
Intel''s stock was sluggishly down 3.1 percent in pre-market trading, indicating a price difference of $45.40 per opening bell.
Tesla''s stock jumps as Musk unloads $4 billion and declares "No More Sales Planned"
Get Tesla Inc Reportshares jumped higher in pre-market trading after CEO Elon Musk said he was doing selling his clean-energy automobile company after dumping nearly $4 billion in stock to pay for his $44 billion acquisition of Twitter.
According to reports from the Securities and Exchange Commission, Musk sold 4.4 million Tesla shares between the two-day period ending on April 27, just days after concluding an agreement to finance around $21 billion for his $54.20 share offer for Twitter.
"There are no additional Tesla sales expected after today," Musk tweeted to his 83 million followers last night, although pre-arranged sales are still possible due to the amount of the billionaire''s equity commitment in the Twitter deal.
Tesla shares were marked 3.3 percent higher in pre-market trading, indicating an opening bell price of $906.52 each. Twitter shares increased by 0.4 percent to $49.30 each.