U.S. stock futures lagged Friday morning as a big earnings miss from Amazon kicked already beaten-down technology stocks lower to end a rough week of third-quarter financials.
Futures on the tech-heavy Nasdaq Composite (^IXIC) slid by 1% ahead of the open, leading the way down for the major averages. Futures tied to the S&P 500 (^GSPC) declined 0.6%, while those on the Dow Jones Industrial Average (^DJI) were off by just 0.1%. The moves came as Treasury yields charged back above 4%.
Amazon (AMZN) shares tanked roughly 13% pre-market after the e-commerce giant issued fourth-quarter sales guidance that missed Wall Street estimates and delivered disappointing Q3 results. The flub marks the second consecutive quarter that weak financials from the company have spurred double digit percentage declines in its stock price.
Meanwhile, Apple (AAPL) offered a “dim light in an otherwise dark earnings season”, faring better than its Big Tech peers as they grappled with macroeconomic hurdles posed by inflation, rising interest rates, and currency headwinds. The company reported record revenue but missed analyst projections in key categories such as iPhone and services. Shares rose about 0.6% in early trading.
Elsewhere in the technology spotlight, Elon Musk has assumed ownership of Twitter (TWTR) after a dragged-out bid to purchase the social media platform was finalized late Thursday. The Tesla CEO fired top executives upon the completion of his $44 billion acquisition of the company and announced plans to reverse lifetime bans from the website. Shares were little changed.
A busy start to Friday for investors was also marked by other reports from energy conglomerates Exxon Mobil (XOM) and Chevron (CVX), which both reported earnings and revenue that topped Wall Street estimates – lifting shares of each name up by more than 2%.
SoFi head of investment strategy Liz Young said in a note that she expects further downward revisions and other notable misses this quarter and next, which are likely to challenge the market further. Young noted, however, that on the plus side, this means that investors can tick the box on “earnings get hit.”
“As we move through that process, next up we’ll likely see the economy hit the skids in a bit more dramatic fashion than we’ve seen thus far,” Young said. “There are already several classic recession warning signs in place, and the risks that still lie ahead are bringing the likelihood of an actual recession closer into view.”
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc