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Stock futures fall amid several major companies missing earnings. Investors await key jobs report Friday morning, Treasuries move higher, Mortgage rates drop to the 5% range, and more financial news.
Stock futures fell on Friday following lower-than-expected earnings reports from several high-profile companies, and as investors anxiously awaited Friday’s jobs report.
Dow Jones industrial average futures dipped 68 points or -0.20%, while S&P 500 futures slid 21.75 points or -0.52%, and NASDAQ futures plummeted 113.5 points or -0.88%, Yahoo Finance reported.
The benchmark 10-Year Treasury note was up +0.092 to yield 3.49% as of 8:43 AM ET, while the 2-Year Treasury note notched up +0.128 for a yield of 4.216%.
In oil futures, WTI crude was up +0.08% and selling at $75.94 a barrel, while Brent crude was up +0.07% at $82.23 per barrel as of 8:44 AM ET.
Apple missed expectations for sales, revenue, and profit for many of its main lines of business. Sales dropped 5 percent, the company’s first year-over-year sales decline since 2019 and delivering Apple its largest quarterly revenue decline since 2016, CNBC reported. Apple shares dipped more than 1% in premarket trading.
Alphabet, the parent company of Google and YouTube, fell short on earnings and revenue as YouTube advertising faltered. Earnings-per-share fell to $1.05 vs $1.18 per share expected, while revenue dropped to $76.05 billion vs. $76.53 billion expected, and YouTube advertising revenue dropped to $7.96 billion vs. $8.25 billion expected, CNBC reported. Google cloud revenue also dropped to $7.32 billion vs. $7.43 billion expected. Alphabet stock fell more than 3% in premarket trading.
Ford reported adjusted earnings for 2022 of $10.4 billion, falling below analysts’ expectations of between $11.5 billion to $12.5 billion for the year, CNBC reported. Ford stocks fell 6% in premarket trading.
Despite net sales rising 8%, Starbucks‘ revenue fell to $8.71 billion vs. $8.78 billion expected, while its earnings-per-share were at 75 cents adjusted vs. 77 cents expected, CNBC reported. Shares of the coffee giant slipped 2% in extended trading.
Amazon beat analysts’ estimates on its fourth-quarter sales, taking in $149.2 billion vs $145.42 billion expected, according to Refinitiv estimates. The company announced that its revenue will be $121 billion to $126 billion, while analysts were expecting $125.1 billion. Amazon Web Services reported 20% sales growth, bringing in $21.4 billion vs $21.87 billion expected, CNBC reported.
Investors are eagerly awaiting January’s job report and are expecting growth to slow. Early projections see growth slowing by 185,000 in January amid a cooling labor market that is expected to put the brakes on hiring, FOXBusiness reported. Unemployment is also projected to tick higher to 3.6%, according to a median estimate by Refinitiv economists.
Mortgage rates fell into the 5 percent range for the first time since September. The rate was at 6.21% at the start of the week, but fell sharply on Wednesday after the Fed announced that inflation “has eased somewhat but remains elevated.” The average rate for a 30-year fixed rate mortgage dropped to 5.99%, Mortgage News Daily said. The lower rate means that a person buying a $400,000 home today with a 20% down payment, will have a monthly payment that is $293 less than it would have been in October, CNBC reported.
