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A Peek Into The Markets: US Stock Futures Drop After Big Tech Earnings

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A Peek Into The Markets: US Stock Futures Drop After Big Tech Earnings

Pre-open movers

U.S. stock futures traded lower in early pre-market trade following the release of earnings reports from big tech companies. Investors are awaiting earnings from Honeywell International Inc. (NYSE: HON), Charter Communications Inc (NASDAQ: CHTR), Colgate-Palmolive Company (NYSE: CL), Phillips 66 (NYSE: PSX) and Exxon Mobil Corporation (NYSE: XOM). Wall Street closed higher in the prior session as the country’s GDP grew at a record pace in the third quarter.

Data on personal income and spending for September, and the employment cost index for the third quarter will be released at 8:30 a.m. ET. The Chicago PMI For October will be released at 9:45 a.m. ET, while the University of Michigan's consumer sentiment index for October is scheduled for release at 10:00 a.m. ET.

Futures for the Dow Jones Industrial Average dropped 312 points to 26,245 while the Standard & Poor’s 500 index futures traded fell 38.05 points to 3,264.25. Futures for the Nasdaq 100 index fell 178.75 points to 11,164.00.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 8,946,690 with around 228,660 deaths. India reported a total of at least 8,088,850 confirmed cases, while Brazil confirmed over 5,494,370 cases.

Oil prices traded higher as Brent crude futures rose 0.5% to trade at $38.46 per barrel, while US WTI crude futures rose 0.6% to trade at $36.37 a barrel. The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.m. ET.

A Peek Into Global Markets

European markets were mixed today. The Spanish Ibex Index rose 0.6% and STOXX Europe 600 Index gained 0.1%. The French CAC 40 Index rose 0.3%, while German DAX 30 dropped 0.2% and London’s FTSE 100 fell 0.1%. German gross domestic product climbed by a record 8.2% during the three months to September, while Spain's economy grew 16.7% on quarter in the same period. The French economy grew at a pace of 18.2% in the third quarter.

 

Asian markets traded lower today. Japan’s Nikkei 225 fell 1.52%, China’s Shanghai Composite declined 1.47%, Hong Kong’s Hang Seng Index declined 1.95% and India’s BSE Sensex fell 0.5%. Australia's S&P/ASX 200 traded lower by 0.6%. Australia’s final demand producer price index increased 0.4% in the third quarter, while Japan's industrial production gained 4.0% in September.

 

Broker Recommendation

Analysts at KeyBanc downgraded PROS Holdings, Inc. (NYSE: PRO) from Overweight to Sector Weight.

Pros Holdings shares fell 0.4% to $31.28 in pre-market trading.

 

Breaking News

  • Amazon.com, Inc. (NASDAQ: AMZN) reported stronger-than-expected results for the third quarter. The company expects fourth-quarter revenue to be in a range of $112 billion to $121 billion, which represents year-over-year growth of 28% to 38%.
  • Apple Inc. (NASDAQ: AAPL) announced better-than-expected results for its fiscal fourth-quarter. Apple's flagship product – the iPhone – fetched revenues of $26.44 billion, down 20.7%.
  • Facebook, Inc. (NASDAQ: FB) reported upbeat results for its third quarter on Thursday, while daily active users surged 12% year-over-year to 1.82 billion. Management expects a sequential acceleration in ad revenue growth in the fourth quarter while 2021 remains a year of "significant" uncertainty.
  • Alphabet Inc (NASDAQ: GOOGL) reported stronger-than-projected results for its third quarter on Thursday.
 

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