Here are the key news, trends and analyzes that investors need to start their trading day:
1. Technology is pushing Wall Street the pre-market; data show that inflation is still high
Trading on the floor of the NYSE, April 28, 2022.
2. Amazon is falling on ugly forecast and slowest growth since dot-com bust
Andy Jassy, CEO of Amazon and then CEO of Amazon Web Services, speaks at the WSJD Live Conference in Laguna Beach, California, on October 25, 2016.
Mike Blake | Reuters
Amazon fell more than 10% in the premarket after its announcement late Thursday of weaker-than-expected first-quarter earnings and lower forward-looking guidance. Revenue for the quarter rose 7% year-over-year to $ 116.4 billion, broadly in line with expectations. It was the slowest sales increase in any quarter since the dot-com bust in 2001 and the second consecutive quarter of single-digit percentage growth. The Amazon Web Services cloud unit was strong again. But not strong enough to carry the e-commerce side of the company, which experienced $ 6 billion in extra costs due to rising inflation, lower labor productivity and excess fulfillment capacity.
3. Apple drops after warning of a massive hit due to supply constraints
Tim Cook, CEO of Apple Inc., will speak at the Peek Performance Virtual Event in New York, USA, on Tuesday, March 8, 2022.
Gabby Jones | Bloomberg | Getty Images
Apple fell 1% in Friday’s premarket, the morning after warning that supply constraints related to Covid could hurt sales by between $ 4 and $ 8 billion in its fiscal third quarter. Expectations overshadowed strong fiscal performance for the second quarter, including earnings, revenue and gross margin. While analysts were looking for a little more out of the Services segment, it nonetheless reported record revenue. Product sales had a record in the March quarter. Investors also received a 5% dividend increase and a $ 90 billion buyback license. At the end of the quarter, Apple had net liquidity of $ 73 billion.
4. Musk is selling about $ 4 billion in Tesla shares as he moves to buy Twitter
Elon Musk sold Tesla shares for about $ 4 billion in the days following his $ 44 billion bid to take Twitter privately, according to applications to the Securities and Exchange Commission. The bulk of the CEO’s sales were made on Tuesday, the records showed. Tesla shares fell 12% that day, but rose less than 1 percentage point on Wednesday.
When the applications went public Thursday night, Musk wrote on Twitter: “No further TSLA sale scheduled for today.” Tesla’s share rose 2% in Friday’s premarket. Twitter shares rose nearly 1% to more than $ 49 each, below the cash offer of $ 54.20 per share from Musk.
5. Chevron, Exxon Fall Despite Reporting Strong Earnings at High Energy Prices
Gas prices will be displayed at a Chevron station on June 14, 2021 in Los Angeles, California.
Mario Tama | Getty Images
Shares of Chevron turned positive in Friday’s premarket after the oil giant reported that profits more than quadrupled during the first quarter due to higher oil and gasoline prices. Chevron’s revenue rose nearly 70% to $ 54.37 billion. West Texas Intermediate crude oil futures rose to $ 130.50 in early March, a price last seen in 2008 when Russia’s invasion of Ukraine sparked supply fears. Prices have since fallen, but are still above $ 100, increasing energy companies’ operations.
Gas prices will be displayed on a petrol pump at an Exxon station in Washington on Tuesday, March 8, 2022.
Bill Clark | Cq-roll Call, Inc. | Getty Images
Shares of Exxon Mobil turned positive in the premarket after the company’s Friday announcement that it took a $ 3.4 billion after tax in the first quarter related to its Sakhalin-1 operations in Russia. Earnings doubled to $ 5.5 billion in the quarter. However, profits fell from $ 8.87 billion in the fourth quarter. Revenue rose more than 50% to $ 90.5 billion, even though it did not live up to expectations.
– CNBCs Tanaya Macheel, Jeff Cox, Annie Palmer, Jeff Marks, Such Leswing, Zev Fima, Lora Kolodny, Christine Wang and Pippa Stevens contributed to this report.
– Nicknamed “Woodstock for Capitalists”, the Berkshire Hathaway annual meeting is on Saturday and it will be livestreamed on CNBC.com. Led by Chairman and CEO Warren Buffett and Vice President Charlie MungerThe event in Omaha, Nebraska, gives shareholders a chance to hear from the two legendary investors and ask them questions.
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