U.S. stock futures are on the rise as traders react to earnings reports from Amazon.com and Apple. Here are the details:
Market Performance
- Dow Jones Industrial Average futures (YM00) are up 103 points, or 0.3%, to 35,415.
- S&P 500 futures (ES00) have gained 24 points, or 0.5%, to 4,546.
- Nasdaq 100 futures (NQ00) increased by 114 points, or 0.7%, to 15,553.
Previous Market Performance
On Thursday, the Dow Jones Industrial Average (DJIA) fell 67 points, or 0.19%, resulting in a closing value of 35,216. The S&P 500 (SPX) declined by 12 points, or 0.25%, finishing at 4,502. The Nasdaq Composite (COMP) dropped 14 points, or 0.1%, closing at 13,960.
Both the S&P 500 and Nasdaq Composite have experienced declines for three consecutive trading days.
What to Expect
Friday is expected to be an eventful session as investors analyze various earnings reports, including those from Apple and Amazon.com, along with the latest jobs data.
According to economists surveyed by the Wall Street Journal, it is anticipated that the Labor Department will report the creation of 200,000 jobs in July at 8:30 a.m. Eastern.
Nicholas Van Ness, U.S. economist at Credit Agricole, states that “from the Fed’s perspective, the labor market remains too hot for comfort, but there are signs that it has begun to move in the right direction.” Credit Agricole predicts a rise of 190,000 jobs.
Fed Anticipates Report in Line with Expectations
According to analysts, a report in line with expectations from the Federal Reserve (Fed) would likely keep them on hold in September. However, if there is a strong upside surprise, it could raise the risk of another interest rate hike.
Amazon Surges on Impressive Earnings
Amazon’s shares have soared after the company reported earnings that far exceeded consensus estimates. The online retailer and cloud provider achieved a trifecta beat, with impressive results in retail revenue, AWS revenue, and margins. Analyst Lloyd Walmsley from UBS has even raised his price target for Amazon’s shares from $150 to $175, noting the positive tone of management on the call and the expectation of further improvement in retail margins and AWS acceleration.
Apple’s Stock Slightly Weaker Despite Better-Than-Expected Earnings
Despite reporting slightly better-than-expected earnings, Apple’s stock experienced a 1% decline in premarket trade. The tech giant managed to achieve modest revenue growth on a constant currency basis in the fiscal third quarter, leveraging its diverse range of hardware and services. However, analyst Samik Chatterjee from JPMorgan noted that the latest quarter’s performance and guidance were not significantly different from previous quarters. He highlighted the challenges posed by an uneven macroeconomic environment across different regions and varying demand for Apple’s products and services.
