Here are the key news, trends, and analysis investors need to start their trading day:
1. Wall Street will open lower as tech stocks decline pre-trading
US stock futures fell on Friday, with the Nasdaq heading for its biggest loss at the opening as Amazon and Apple shares fell on disappointing quarterly premarket results. Microsoft could take Apple’s most valuable corporate crown if the pre-market trading takes place in the regular session.
Ahead of the tech gains that came after Thursday’s bell, the S&P 500 and Nasdaq closed at record highs, tracking solid weekly gains. The Dow Jones Industrial Average just closed Tuesday’s record high and was only slightly positive for the week leading up to Friday’s session.
In addition to Friday’s gains, investors were given important information on inflation that is being closely monitored by the Federal Reserve. The September core consumer spending index, which excludes food and energy costs, rose 3.6% year over year, slightly lower than estimates but in line with August’s increase, which was the largest in more than 30 years.
2. Amazon and Apple blame the supply chain for disappointing sales
Andy Jassy, Chief Executive Officer of Amazon.Com Inc., speaks during the GeekWire Summit in Seattle, Washington, the United States, on Tuesday, October 5, 2021.
David Ryder | Bloomberg | Getty Images
Shares Amazon fell 4% in the premarket on Friday, the morning after the e-commerce and cloud giant updated estimates for both adjusted earnings per share of $ 6.12 and revenue of $ 110.81 billion The US dollar had fallen sharply in the third quarter. Amazon also provided lower forecasts for the upcoming critical vacation season, with the company’s CEO Andy Jassy citing labor shortages, higher labor costs, global supply chain constraints, and increased freight and shipping costs.
Tim Cook introduces iPhone 13
Source: Apple Inc.
Apple shares were down about 3.5% in pre-trading hours after the tech giant hit forecasts with adjusted earnings of $ 1.24 per share for the fourth fiscal quarter but revenue of $ 83.36 billion late Thursday -Dollars missed. Apple said supply chain issues had impacted the production of iPhones and other products. The company hasn’t made any official forecasts since the Covid pandemic began, but CEO Tim Cook said Apple expected “solid year-over-year revenue growth” in the December quarter.
3. Facebook changes the company name to Meta and changes the ticker on December 1st
Facebook announced on Thursday that it had changed its company name to Meta. The new name reflects the company’s growing ambitions beyond social media. Facebook, now known as Meta, has adopted the new nickname, based on the science fiction term Metaverse, to describe its vision for working and playing in a virtual world. When it announced its new name, the company also announced that it would change its stock ticker from FB to MVRS effective December 1.
The recently under pressure meta-shares closed higher on Thursday and rose again in the pre-listing price on Friday. The name change comes amid a flurry of news reports last month after Frances Haugen, a former whistleblower-turned employee, posted tons of internal corporate documents to news outlets, lawmakers and regulators.
4. Rising raw material prices increase the profits of the energy giants
On July 12, 2021 in San Francisco, California, Chevron and Shell gas stations display gasoline prices close to $ 5.00 per gallon.
Justin Sullivan | Getty Images
Chevron’s shares rose nearly 2% pre-IPO after the company reported its highest free cash flow ever in the third quarter on Friday as rising commodity prices and lower operating costs fueled operations. The oil giant beat sales and earnings estimates for the period and earned $ 2.96 per share on an adjusted basis. Revenue grew more than 80% year over year to $ 44.71 billion.
Exxon Mobil shares rose about 1% in pre-trading hours after the energy giant reported adjusted earnings per share of $ 1.58 for the third quarter on Friday; the highest profit in years, beating estimates by 2 cents and reversing the previous year’s loss. Revenue of $ 73.79 billion missed forecast but was up nearly 60% year over year.
5. Treasury Secretary Janet Yellen says Biden spending is not inflationary
Janet Yellen, U.S. Treasury Secretary, speaks during an interview at the National Association of Business Economics (NABE) annual meeting in Arlington, Virginia, the United States, on Tuesday, September 28, 2021.
Amanda Andrade-Rhoades | Bloomberg | Getty Images
Treasury Secretary Janet Yellen claimed Friday that the Biden government’s proposal on infrastructure spending will bring inflation down by lowering the cost of life to households. Yellen also told CNBC that the $ 1.75 trillion framework for President Joe Biden’s climate and social spending priorities will be “paid in full” by asking wealthy Americans to pay more taxes. The finance minister accompanies Biden on his trip abroad to the G-20 summit in Rome and the United Nations climate change conference in Glasgow, Scotland.
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