#Stock #Market #Opens
US stock futures fell as market watchers took stock of disappointing earnings from Magnificent Seven companies; Meta Platforms (META) shares fall in pre-market trading despite beating earnings estimates as spending levels worry investors; Microsoft (MSFT) stock fell after cloud services revenue fell short of analysts’ expectations; The Personal Consumption Expenditure (PCE) inflation index for September is due today, as the Fed considers further interest rate cuts; Amazon (AMZN), Apple (AAPL), and Intel (INTC) are scheduled to report earnings after the close. Here’s what investors need to know today.
1. US stock futures fall as technology stumble scares investors
US stock futures are trading lower after disappointing earnings from Mag 7 companies after Wednesday’s close spooked investors. The Nasdaq fell nearly 1% in pre-market trading, after the tech-focused index hit an all-time high during intraday trading yesterday before closing lower. S&P 500 futures and the Dow Jones Industrial Average also fell less than 1%. Gold futures fell slightly after hitting a record high yesterday, while Bitcoin was little changed as it remained near its record high. Oil futures rose less than 1%.
2. Decrease in overhead inventory after raising expected spending levels
Meta Platforms (META) shares fell 3% in pre-market trading after the social media giant said it would increase spending while investing in artificial intelligence (AI). Facebook’s parent company reported revenue of $40.59 billion, up from $34.15 billion at the same time last year and higher than the $40.27 billion that analysts had expected, according to estimates compiled by Visible Alpha. Meta reported $15.69 billion in net income, up from $11.58 billion and better than analysts’ expectations of $13.58 billion. The company also raised its minimum full-year capital expenditure forecast to $38 billion from $37 billion.
3. Microsoft shares decline as cloud revenue growth lags behind estimates
Microsoft (MSFT) shares fell 4% in pre-market trading after the tech giant’s cloud services revenue growth fell short of analysts’ expectations. The company’s third-quarter revenue rose 16% year over year to $65.59 billion, better than the consensus from Visible Alpha, while its net income of $24.67 billion, or $3.30 per share, was above expectations. But while Microsoft’s cloud segment generated revenue of $24.09 billion, an increase of 20%, it was below estimates of $28.97 billion.
4. September inflation data comes as the Fed eyes further interest rate cuts
Market watchers will receive key inflation data today at 8:30 AM with the release of the Personal Consumption Expenditures (PCE) index for September. The economic indicator is expected to show inflation falling to an annual rate of 2.1% for the month, according to economists surveyed. The Wall Street Journal and Dow Jones Newswires. This would be a decline from the previous month and put the inflation rate at its lowest level in three years. The data comes ahead of the Federal Reserve’s meeting next week, where officials could cut interest rates again as inflation approaches the central bank’s 2% target.
5. Big Tech profits continue with Amazon, Apple and Intel after the lockdown
Investors will get more big tech earnings after markets close today, with Amazon (AMZN), Apple (AAPL), and Intel (INTC) all set to report them. Amazon is expected to post a 25% year-over-year profit jump to $12.32 billion, as investors are likely to examine the online retailer’s earnings in relation to its spending on artificial intelligence. Apple is expected to show a 5% increase in revenue in its report, the first since the company launched the AI-powered iPhone 16 in September. Analysts expect struggling chipmaker Intel to report a net loss of about $1 billion and an 8% drop in revenue. Amazon and Apple shares are down slightly in premarket trading, while Intel shares are slightly higher.
#Stock #Market #Opens
