Live stock market news updates: Stock futures tumble after big misfire from Amazon

Live stock market news updates: Stock futures tumble after big misfire from Amazon

U.S. stock futures lagged Friday morning as a big loss in Amazon earnings dragged down tech stocks already battered to end a tough week of third-quarter financial results.

Futures on the tech-heavy Nasdaq Composite (^IXIC) slid 1% ahead of the open, setting the stage for major averages lower. Futures linked to the S&P 500 (^GSPC) were down 0.6%, while those on the Dow Jones Industrial Average (^DJI) were down just 0.1%. The moves came as Treasury yields climbed back above 4%.

On the economic data front, the Federal Reserve’s preferred inflation measure showed that prices are still hot across the broader US economy.

The core Personal Consumption Expenditure (PCE) price index rose 0.5% in September from the previous month, the Commerce Department said on Friday — a slight slowdown from the 0.6% pace. month to month in August. The gauge showed a 5.1% year-over-year increase, an acceleration from the annual 4.9% seen in August. Economists polled by Bloomberg had expected increases of 0.5% and 5.2%, respectively.

Personal income rose 0.4% in the month and consumer spending 0.6%, compared to economists’ estimates of a 0.4% increase for each measure.

Shares of Amazon (AMZN) fell about 13% before market after the e-commerce giant released fourth-quarter sales forecasts that missed Wall Street estimates and delivered disappointing results to the third trimester. The flub marks the second consecutive quarter where weak financials at the company have caused its share price to drop by double digits.

Meanwhile, Apple (AAPL) offered a “dim light in an otherwise gloomy earnings season”, faring better than its Big Tech peers as they grappled with macro headwinds posed by inflation, rising interest rates and currency headwinds. The company posted record revenue but missed analysts’ projections in key categories such as iPhone and services. Shares were up about 0.6% in early trading.

Elsewhere in the tech spotlight, Elon Musk has taken ownership of Twitter (TWTR) after an extended offer to buy the social media platform was finalized Thursday night. Tesla’s CEO fired top executives at the end of his $44 billion acquisition of the company and announced plans to reverse lifetime bans from the website. Stocks changed little.

The Twitter logo and a photo of Elon Musk are shown through a magnifying glass in this illustration taken October 27, 2022. REUTERS/Dado Ruvic/Illustration

The Twitter logo and a photo of Elon Musk are shown through a magnifying glass in this illustration taken October 27, 2022. REUTERS/Dado Ruvic/Illustration

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 beat Wall Street estimates – increasing the shares of each name by more than 2%.

SoFi’s head of investment strategy, Liz Young, said in a note that she expects further downgrades and other notable misfires this quarter and next, which are likely to challenge the market more. Young noted, however, that on the positive side, it means investors can tick the box “earnings are affected.”

“As we go through this process, we’ll probably see the economy skidding in a bit more dramatic way than what we’ve seen so far,” Young said. “There are already several classic recession warning signs, and the risks that lie ahead bring the likelihood of a true recession closer.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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