U.S. equity futures are falling ahead of the final trading day of the week as quarterly results for some technology names fell short.
Dow futures suggest a decline of 1.5%, with Nasdaq futures down nearly 2%.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Five technology giants reported strong earnings but mixed outlooks Thursday, a sign of varying fortunes as they work to rebound from a pandemic-related economic slowdown earlier this year.
While all five — Amazon, Google parent Alphabet, Facebook, Apple and Twitter — exceeded analyst expectations, gloomy forecasts and other uncertainties led to share-price declines for all but Alphabet in after-market trading.
Twitter shares fell 15%, Apple lost 4% and Facebook was off more than 2%.
TWITTER SHARES PLUNGE AS USER GROWTH SLOWS
The busiest week for 3Q earnings season wraps up with two Dow members – Chevron and Honeywell – reporting ahead of the opening bell. We’ll also get results from former Dow component and integrated oil giant ExxonMobil.
The Commerce Department will report personal income and spending for September. Spending is expected to jump 1%, matching the gain in August. Income is likely to rise 0.4%, reversing a 2.7% slide in August.
The University of Michigan’s will release its final index of consumer sentiment for October. It’s expected to remain unchanged from the preliminary reading of 81.2.
US ECONOMIC GROWTH SHATTERS RECORD BUT FAILS TO SNAP CORONAVIRUS RECESSION
Investors are also looking ahead to next week’s U.S. presidential election and weighed the chances of economic stimulus from Washington and Europe.
Investors have been dismayed by lack of progress in talks between the White House and Congress on new U.S. stimulus. Hopes for action ahead of Tuesday’s election and potential wrangling over the outcome have diminished.
In Europe, London’s FTSE is down 0.8%, Germany’s DAX fell 0.9% and France’s CAC declined 0.8%.
In Asia, the Nikkei 225 in Tokyo fell 1.5%, and the Hang Seng in Hong Kong lost 2.1%.
China’s Shanghai Composite Index fell 1.5% after the ruling Communist Party said it will transform China into a self-reliant “technology power” as a feud with Washington hampers access to high-tech components.
|I:DJI||DOW JONES AVERAGES||26659.11||+139.16||+0.52%|
|I:COMP||NASDAQ COMPOSITE INDEX||11185.592838||+180.72||+1.64%|
On Thursday, the benchmark S&P 500 index rose 1.2% to 3,310.11, helped by a rebound for tech stocks as the market steadied after its worst drop in four months.
The Dow Jones Industrial Average gained 0.5%, to 26,659.11. The tech-heavy Nasdaq composite climbed 1.6% to 11,185.59.
JOBLESS CLAIMS FALL TO 751,000, LOWEST LEVEL SINCE MARCH
Traders welcomed data that showed the number of U.S. workers applying for unemployment benefits eased last week to 751,000. That was down from the previous week’s 791,000 and better than economists expected.
CLICK HERE TO READ MORE ON FOX BUSINESS
In energy markets, benchmark U.S. crude added 4 cents to $36.21 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.22 on Thursday to $36.17. Brent crude, the price standard for international oils, fell 29 cents to $37.36 per barrel in London. It lost $1.47 the previous session to $37.65.
The Associated Press contributed to this report.