• Home
  • Stock News
  • Market Snapshot: U.S. stock futures mixed after Meta shocker, as traders nervously await Apple and Amazon results

Post: Market Snapshot: U.S. stock futures mixed after Meta shocker, as traders nervously await Apple and Amazon results

U.S. stock-index futures were mostly higher after better-than-expected third quarter economic growth data on Thursday, but the technology sector was likely to see a weaker start after Meta Platforms Inc. released disappointing results while traders nervously awaited earnings from Apple and Amazon.

How are stock-index futures trading
  • S&P 500 futures

    were up 10.25 points, or 0.3%, at 3,853.20.

  • Dow Jones Industrial Average futures

    rose 320 points, or 1%, to 32,083

  • Nasdaq 100 futures

    fell 24 points, or 0.2%, to 11,426.

On Wednesday, the Dow

eked out a tiny gain to extend a win streak to four sessions, while the S&P 500

fell 0.7% and the Nasdaq Composite

dropped 2%. The Nasdaq Composite is up 6.3% from its 2022 closing low hit on Oct. 14, but remains down 29.9% for the year to date.

What’s driving markets

Stock futures got a lift after the first estimate of third-quarter GDP came in 2.6% higher on an annual basis, and above the 2.3% gain economists expected. Other data showed durable goods orders rising 0.4% in September. The latest weekly initial jobless claims data showed a 3,000 gain to 217,000.

Just ahead of that data, the European Central Bank announced a widely expected interest-rate rise of 75 basis points to 1.5% as expected on Thursday. Investors will now wait for the press conference with President Christine Lagarde, due to begin at 8:45 a.m. Eastern. The dollar hovered around parity with the euro

But investors have had their attention distracted Thursday by the latest gloomy set of earnings on the tech front.

Big Tech was supposed to be the place that provided investors with some safety during an economic slowdown, but traders have learned that the high valuations these companies were afforded have made them very vulnerable to any indication of cyclical difficulties.

Need to Know: Why the rout for big tech companies may just be getting started

After Microsoft Corp.

and Alphabet Inc.

earnings disappointed late on Tuesday, Meta’s

attempted transformation to a metaverse platform was not well received by the market.

Shares in the company formerly known as Facebook were set to open Thursday’s session down 20%, trading just above $100 and near a 7-year trough.

Read: Analysts slash their ratings on Meta as costs balloon. ‘The bad news is you suck, the good news is you can only get better.’

It’s left investors nervously eyeing the earnings of Apple Inc.

and Amazon.com Inc.
due after the close.

Read: Apple earnings: What do the iPhone production reports really mean?

“Realization has dawned that the might of big tech is not immune to the slowdown. Hopes that resilience would burn brightly through this U.S. earnings season have dimmed,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

However, Mark Newton, technical strategist at Fundstrat, saw the positive in the latest market action. “The important takeaway for all investors Wednesday focused on stock indices being able to rally sharply off the lows despite poor Tech earnings as rates followed through further to the downside,” he wrote in a note to clients.

“That’s an important point…it shows us all that markets are focusing more on interest rate changes (and should eventually focus on declining inflation) more than negative earnings,” Newton added.

The Federal Reserve is expected to raise its benchmark interest rate by 75 basis points to a range of 3.75% to 4% after its meeting next week, but recent soft U.S. economic data have built hopes that the central bank may decelerate its pace of tightening thereafter — a perception that has helped the S&P 500 index climb 7.1% through Wednesday off its 2022 low set two weeks ago.

Companies in focus

Barbara Kollmeyer contributed to this report.

Add Your Heading Text Here

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Market Insiders