Stocks poised to open sharply lower as tech earnings and virus fears weigh

263

Futures point to steep losses at open

U.S. stock markets are expected to open in the red on Friday after Apple (NASDAQ: AAPL) and Facebook (NASDAQ: FB) provided muted outlooks late Thursday, while Amazon (NASDAQ: AMZN) warned of rising Covid-related costs.

Chevron (NYSE: CVX), Exxon Mobil (NYSE: XOM), Honeywell International (NYSE: HON), Under Armour (NYSE: UAA), and AbbVie (NYSE: ABBV) will report ahead of the opening bell.

Meanwhile, the U.S. set another record for new daily cases, more than 89,000, surpassing the record set last Friday when the nation recorded 85,000 according to figures compiled by The Washington Post.

By 5:40 a.m. ET, futures on the blue-chip Dow were indicated 292.5 points, or 1.1% lower to 26,264.5. Those on the S&P 500 dropped 35.18 points, or 1.07% to 3,267.12 while the tech-heavy Nasdaq 100 futures gave away 173.5 points, or 1.53% to 11,169.25.

Apple beats expectations, gives no outlook

Apple reported earnings of 73 cents per share in the quarter that ended in September, topping consensus estimates of 71 cents. Revenue grew 1.03% on a year-over-year basis to $64.70 billion, beating expectations of $63.7 billion.

The Cupertino, California-based tech giant said iPhone revenue tumbled 21% in the quarter, worse than Wall Street had projected, as the company didn’t lunch the iPhone 12 until October.

Apple did not provide any outlook for the quarter ending in December. As of this writing, shares of the company were down 3.75% to $110.99 each in Friday’s pre-market trading session.

Amazon beats on earnings and revenue, forecasts rise in Covid-19 costs

Amazon reported third-quarter earnings of $12.37 per share late Thursday, which was 67% higher than consensus estimate of $7.41. Revenue came in at $96.1 billion, up 37% from the same period last year and above estimates of $32.7 billion.

The online retailer expects revenue to be in a range of $112 billion to $121 billion during the current quarter, representing year-over-year growth of 28% to 38%. However, it expects to incur $4 billion in coronavirus related costs in the quarter.

Amazon shares were down 1.36% to $3,167.50 apiece in pre-market trading.

Facebook tops estimates as ad revenue grows

Meanwhile, Facebook posted third-quarter earnings of $2.71 per share on revenue of $21.47 billion. Analysts had called for earnings of $1.91 per share on revenue $19.82 billion.

The social media titan said total advertising revenue increased to $21.221 billion from $17.383 billion in the same quarter last year. Total costs and expenses rose to $13.430 billion from $10.467 billion.

Facebook expects revenue to grow even faster during the current quarter, as the holiday season bolsters adverting spending. Shares of the California-based company were little changed in pre-market trading hours.

NO COMMENTS

LEAVE A REPLY