HomeStock futures drop as Amazon and Apple shares drop after earnings disappoint

Stock futures drop as Amazon and Apple shares drop after earnings disappoint

Stock futures fell Thursday evening, with investors awaiting a few disappointing earnings results from An apple (AAPL) And Amazon (AMZN) punctuated by a strong quarterly reporting season from several major companies.

Contracts in the S&P 500 slipped, retreating after the blue-chip index hit a record closing high on Thursday. Nasdaq futures underperformed amid the decline in major technology names.

Amazon shares fell late in trading The e-commerce giant missed its third-quarter forecast and forecast a jump in expenditures in the fourth quarter due to supply chain disruptions and rising labor, material and shipping costs. These factors are expected to generate “several billions of dollars in additional costs” for Amazon in the current quarter, the company said in its earnings statement.

Tech giant Apple also disappointed Wall Street in its fiscal first-quarter financial results, with major iPhone sales missing expectations even after the launch of its latest iPhone 13 series phones. Apple suppliers including Taiwan Semiconductor Manufacturing Co., Ltd. (TSM), Qualcomm (QCOMand BroadcomAVGO) fell immediately after the results.

For Wall Street, the findings appear to justify concerns that growing supply chain disruptions, labor costs and material shortages are affecting businesses of all sizes heading into the holiday season, and are creating challenges for businesses to keep pace with rising demand.

For Apple, Amazon and some other tech companies, investors also feared that these key members of last year’s lucrative “stay at home” business would not be able to sustain high growth rates in the wake of the pandemic’s sudden surge in their businesses. Amazon sales grew 15% in the third quarter, slowing significantly from 27% in the second quarter.

Rebecca Felton, chief market analyst at Riverfront Investment Group, told Yahoo Finance Live about the tech companies on Thursday: “I’d agree that it’s overblown, but remember that valuation is a condition, not a catalyst. And I think the catalyst for technology will be consistency in both the top and bottom.” .

Meanwhile, investors continued to digest a mixed batch of economic data results, which included a weaker-than-expected reading of third-quarter GDP. Although comprehensive in scope, the report still provides only a retrospective view of the state of the economy. Some critics pointed out that economic activity had already begun to recover, which helped boost corporate performance in the final months of the year and stock prices.

“I still think the best is yet to come,” Heritage Capital President Paul Schatz Yahoo Finance on Thursday. “Q3 GDP will be low. We will have much stronger growth in the fourth quarter and first quarter of next year, inflation will peak in the next six months, and supply chain issues will moderate severely by the second quarter of next year. This high tide will lift most ships” .

“Economically sensitive trade, whatever you want to call it – reopening, deflation, inflation – this trade is very lively, very good and not over yet,” he added.

NEW YORK, NY – SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In the afternoon, the Dow was down more than 250 points as investors remained concerned about inflation, wages and supply chain issues. (Photo by Spencer Platt/Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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