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Nasdaq futures fall as Amazon and Apple retire after earnings

A trader works on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York, on April 11, 2022.

Andrew Kelly | Reuters

Nasdaq 100 futures fell Thursday night after an extravaganza of Big Tech earnings with disappointments from Amazon and Apple.

Futures linked to the technology-heavy index fell 2%, while the Dow Jones Industrial Average Futures fell 0.3% and S&P 500 futures retreated 1%.

The movements are a big turnaround for equities, which staged a major comeback in ordinary trading on Thursday. The Dow rose 614 points or 1.9% and the S&P 500 rose 2.5%. The technology-heavy Nasdaq Composite rose 3.1 percent.

Investors’ major focus was on Amazon, whose shares are down about 10% in extended trading after reporting a surprising loss thanks to its investment in Rivian and issued weak second-quarter revenue expectations.

Apple initially got a boost after high earnings, but turned lower after CFO Luca Maestri said supply chain constraints could hamper tax revenue in the third quarter. Shares fell more than 3% after hours.

Despite Thursday’s gains, stocks still have a way back to turn green for the month. The Dow has fallen 2.2% for the month and the S&P 500 has fallen 5.4%. Nasdaq is in its worst month since March 2020, a decline of 9.5 percent. Friday will be the last trading day of the month.

This has been one of the busiest weeks of the earnings season and a particularly intense week for technology companies, which has driven the mood of investors throughout the week.

Stock options and investment trends from CNBC Pro:

Intel also reported earnings Thursday night. The stock fell more than 3% in extended trading after the company issued weak guidance for its fiscal second quarter. Shares of Robinhood fell more than 8% after hours after the company reported a larger-than-expected loss, declining revenue and a decline in monthly active users.

In addition to earnings, investors remain concerned about declining global growth, rising inflation and the Federal Reserve’s monetary tightening.

On Thursday, the Department of Commerce reported that U.S. gross domestic product fell unexpectedly in the first quarter by 1.4% from the previous year, compared to the 1% growth expected by economists surveyed by the Dow Jones.

On Friday, investors will be looking for new data on personal spending (PCE). Core PCE is the Federal Reserve’s primary measure of inflation. The University of Michigan’s consumer mood index is also published at 10.00 ET.

Friday will bring a calmer day of earnings to end the week. Honeywell, Bristol-Myers Squibb is on deck before the bell. Energy companies Exxon Mobil, Chevron and Phillips 66 will also report.

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