U.S. equity futures fall ahead of the last trading day of the week, with quarterly results for some tech names dropping.
Dow futures suggest a drop of 1.5%, Nasdaq futures down almost 2%.
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Five tech giants on Thursday reported strong earnings but mixed prospects, a sign of varying fortunes as they struggle to bounce back from an economic slowdown linked to a pandemic earlier this year.
While all five – Amazon, Google Parent Alphabet, Facebook, Apple, and Twitter – have exceeded analysts’ expectations, grim forecasts and other uncertainties have led to a drop in stock prices for all but Alphabet in trading after. -market.
Twitter shares fell 15%, Apple lost 4%, and Facebook lost more than 2%.
TWITTER SHARES DIVE As User Growth Slows
The busiest week of the Q3 earnings season ends with two members of Dow – Chevron and Honeywell – reporting ahead of the opening bell. We will also get results from former component Dow and integrated oil giant ExxonMobil.
The Commerce Department will report personal income and expenses for September. Spending is expected to rise 1%, matching the gain in August. Income is expected to rise 0.4%, reversing a 2.7% drop in August.
The University of Michigan will release its final consumer sentiment index for October. It is expected to remain unchanged from the preliminary reading of 81.2.
UNITED STATES ECONOMIC GROWTH RECORDED, BUT CORONAVIRUS RECESSION FAILED
Investors are also eyeing the US presidential election next week and weighed the chances of an economic recovery in Washington and Europe.
Investors were dismayed by the lack of progress in talks between the White House and Congress on a new US stimulus. Hopes for action ahead of Tuesday’s election and potential wrangling over the outcome have waned.
In Europe, London’s FTSE is down 0.8%, Germany’s DAX is down 0.9% and France’s CAC is down 0.8%.
In Asia, Tokyo’s Nikkei 225 fell 1.5% and Hong Kong’s Hang Seng fell 2.1%.
China’s Shanghai Composite Index fell 1.5% after ruling Communist Party said it would turn China into a self-sustaining “technological powerhouse” as feud with Washington hampers access to components high-tech.
|I: DJI||MEDIUM DOW JONES||26659,11||+139,16||+ 0,52%|
|SP500||S&P 500||3310,11||+39.08||+ 1,19%|
|I: COMP||INDEX COMPOSITE NASDAQ||11185.592838||+180,72||+ 1,64%|
On Thursday, the benchmark S&P 500 rose 1.2% to 3,310.11, helped by a rebound in tech stocks as the market stabilized after its worst drop in four months.
The Dow Jones Industrial Average gained 0.5% to 26,659.11. The highly technical Nasdaq composite climbed 1.6% to 11,185.59.
UNEMPLOYED CLAIMS DROP AT 751,000, LOWEST SINCE MARCH
Traders welcomed data which shows the number of American workers claiming unemployment benefits fell last week to 751,000. This was down from 791,000 the week before and better than economists expected. .
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In energy markets, benchmark US crude added 4 cents to $ 36.21 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell from $ 1.22 on Thursday to $ 36.17. Brent, the international oil price standard, fell 29 cents to $ 37.36 a barrel in London. He lost $ 1.47 the previous session to $ 37.65.
The Associated Press contributed to this report.