Stock futures fall as Amazon and Apple retreat after earnings

Nasdaq 100 futures fell early Friday morning following an extravaganza of Big Tech earnings, with disappointments from Amazon and Apple.

Futures tied to the tech-heavy index fell 0.92%, while Dow Jones Industrial Average Futures were down 0.11% and S&P 500 futures retreated by 0.47%.

The moves are a big reversal for stocks, which posted big gains in Thursday trade. The Dow rose 614 points, or 1.9%, and the S&P 500 advanced 2.5%. The tech-heavy Nasdaq Composite jumped 3.1%.

Investors’ big focus Thursday night was on Amazon, whose shares tumbled around 9% in extended trading after reporting a surprise loss thanks to its investment in Rivian and issued weak revenue guidance for the second quarter.

Apple initially got a lift after a big earnings beat but turned lower after CFO Luca Maestri said supply chain constraints could hinder fiscal third-quarter revenue. Shares were down more than 2% after hours.

Despite Thursday’s gains, stocks still have a ways to go to finish green for the month. The Dow is off by 2.2% for the month and the S&P 500 is down 5.4%. The Nasdaq is on pace for its worst month since March 2020, down 9.5%. Friday will be the last trading day of the month.

This has been one of the busiest weeks for earnings season and a particularly intense one for tech companies, which have driven investor sentiment throughout the week.

Intel also reported earnings Thursday evening. The stock fell more than 3% in extended trading after the company issued weak guidance for its fiscal second quarter. Shares of Robinhood dropped more than 11% after hours, after the company reported a wider-than-expected loss, shrinking revenue and a decrease in monthly active users.

Beyond earnings, investors remain concerned about slowing global growth, rising inflation and the Federal Reserve’s monetary tightening.

On Thursday the Commerce Department reported U.S. gross domestic product unexpectedly declined in the first quarter by 1.4% from the previous year, compared to the 1% growth expected by economists surveyed by Dow Jones.

On Friday investors will look for fresh data on personal consumption expenditures (PCE). Core PCE is the Federal Reserve’s primary inflation gauge. The University of Michigan’s consumer sentiment index is also due out at 10 am ET.

Friday will bring a quieter day of earnings to end the week. Honeywell, Bristol-Myers Squibb are on deck before the bell. Energy companies Exxon Mobil, Chevron and Phillips 66 will also report.