Traders on the floor of the NYSE, Oct. 21, 2022.
Source: NYSE
Nasdaq 100 futures were lower Thursday night after disappointing Amazon earnings added to the already pressured index.
Futures tied to the Nasdaq dropped 0.9%. Dow Jones Industrial Average futures fell 0.1%, and S&P 500 futures lost 0.6%.
Amazon led the declines in extended trading, having plunged after the company posted weaker-than-expected quarterly revenue and issued disappointing fourth-quarter sales guidance. Apple shares were also lower after hours following its quarterly results, which included weaker-than-anticipated iPhone revenue.
Tech names were a dark cloud over the market in regular trading, too. Earlier in the day, the Nasdaq Composite lost 1.6%, due to a rout in Meta and other tech stocks, 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 that inflation may be waning.
SoFi head of investment strategy 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,” she said on CNBC’s “Closing Bell: Overtime.” “There’s usually a sequence of events: First the market goes, then earnings go, then the economy goes. So this is finally that part where we’re seeing earnings get hit and I don’t think it’s any mistake that it’s tech getting hit the most. Tech is what has been under pressure in this market since the beginning.”
“This is just another check on the list of things that we need to get through before we can really be done with this part of the cycle,” she added.
The Dow and S&P are on pace to end the week higher by about 3% and 1.5%, respectively. The Nasdaq is set to finish slightly lower.
Friday brings a quieter day for earnings. As investors digest the bloodbath in tech, they’ll have Chevron and Exxon Mobil on deck before the bell as well as AbbVie and Colgate-Palmolive.
In economic data, traders are looking forward to the Personal Consumption Expenditures Price Index as well as consumer sentiment and pending home sales.
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