5 things to know before the stock market opens on Friday, October 29
Here are the most important news, trends and analysis investors need to start their trading day:
1. Wall Street poised to open lower as tech stocks crash ahead of commercialization
U.S. equity futures fell on Friday with the Nasdaq heading for the biggest opening loss, as Amazon and Apple shares sank to pre-market in disappointing quarterly results. Microsoft could take the crown of Apple’s most valuable company if pre-market trading continues in the regular session.
Ahead of tech profits, which came after the bell on Thursday, the S&P 500 and Nasdaq closed at record highs and followed strong weekly gains. The Dow Jones Industrial Average finished just before Tuesday’s record close and was only slightly positive for the week leading up to Friday’s session.
In addition to the following results on Friday, investors got a key inflation reading which is closely watched by the Federal Reserve. September’s basic personal consumption expenditure price index, which excludes food and energy costs, rose 3.6% from a year ago, slightly lower than estimated but matching the increase in August, the largest in more than 30 years.
2. Amazon and Apple accuse the supply chain of disappointing revenue
Andy Jassy, CEO of Amazon.com Inc., speaks at the GeekWire Summit in Seattle, Washington, United States on Tuesday, October 5, 2021.
David Ryder | Bloomberg | Getty Images
Amazon shares fell 4% in the pre-market on Friday, the morning after the e-commerce and cloud giant seriously missed estimates for adjusted earnings per share of $ 6.12 and revenue of $ 110.81 billion in the third quarter. Amazon also provided weaker forecasts for the next critical holiday period, with company CEO Andy Jassy citing labor shortages, higher labor costs, chain constraints of global sourcing and increased transportation and shipping costs.
Tim Cook presents the iPhone 13
Source: Apple Inc.
Apple shares fell about 3.5% in pre-market trading after the tech giant matched expectations Thursday night with adjusted earnings of $ 1.24 per share in its fiscal fourth quarter , but missed a turnover of 83.36 billion dollars. Apple said supply chain issues have impacted production of iPhones and its other products. The company has not provided official guidance since the start of the Covid pandemic, but CEO Tim Cook said Apple expects “solid year-over-year revenue growth” over the course of the year. of the December quarter.
3. Facebook changes company name to Meta, is about to change ticker on December 1st
Facebook announced Thursday that it had changed the name of its company to Meta. The new name reflects the company’s growing ambitions beyond social media. Facebook, now known as Meta, adopted the new moniker, based on the sci-fi term metaverse, to describe its take on work and play in a virtual world. The company also said in announcing the new name that it will change its ticker from FB to MVRS, effective December 1.
Meta shares, which recently came under pressure, closed higher on Thursday and rose again in pre-market on Friday. The rebranding comes amid a barrage of reporting over the past month after Frances Haugen, a former employee turned whistleblower, released a wealth of internal company documents to news outlets, lawmakers and regulators .
4. Soaring commodity prices boost profits for energy giants
Gas prices near $ 5.00 per gallon are displayed at Chevron and Shell stations on July 12, 2021 in San Francisco, California.
Justin Sullivan | Getty Images
Chevron shares gained nearly 2% in pre-market after the company on Friday announced its highest free cash flow on record in the third quarter, soaring commodity prices and falling costs of operation that stimulated operations. The oil giant topped earnings estimates for the period, earning $ 2.96 per share on an adjusted basis. Revenue jumped more than 80% year-over-year to $ 44.71 billion.
Exxon Mobil shares rose about 1% in pre-market trading after the energy giant on Friday reported adjusted third-quarter earnings per share of $ 1.58; the highest profit in years, beating estimates by 2 cents and reversing a loss from a year ago. Revenue of $ 73.79 billion missed plan, but grew nearly 60% year-over-year.
5. Treasury Secretary Janet Yellen Says Biden Spending Is Not Inflationary
Janet Yellen, U.S. Secretary of the Treasury, speaks during an interview during the National Association of Business Economics (NABE) annual meeting in Arlington, Virginia, United States, Tuesday, September 28, 2021.
Amanda Andrade-Rhoades | Bloomberg | Getty Images
Treasury Secretary Janet Yellen said on Friday that the Biden administration’s infrastructure spending proposal will lower inflation by lowering vital costs to households. Yellen also told CNBC that President Joe Biden’s $ 1.75 trillion framework for social and climate spending priorities was “fully paid” in part by asking wealthy Americans to pay more taxes. The Treasury Secretary accompanies Biden on his overseas trip to the G-20 summit in Rome and the United Nations climate change conference in Glasgow, Scotland.
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