Stock Futures Fall as FAANG Earnings Weigh

Apple and Amazon.com both reported revenue misses

Managing Editor
Oct 29, 2021 at 9:24 AM
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Futures on the Dow Jones Industrial Average (DJI) and S&P 500 (SPX) are pointed lower this morning, weighed down by lackluster FAANG earnings. Apple (AAPL) and Amazon.com (AMZN) both reported revenue that came in below analyst estimates, while the latter trimmed its holiday guidance. Nasdaq-100 (NDX) futures are understandably taking the brunt of the damage, and are signaling a triple-digit move lower in premarket. The disappointing tech results are overshadowing premarket gains from energy giants Exxon Mobil (XOM) and Chevron (CVX), both of which reported top-line beats. 

Continue reading for more on today's market, including:

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.9 million call contracts traded on Thursday, compared to 990,863 put contracts. The single-session equity put/call ratio rose to 0.51, and the 21-day moving average stayed at 0.48.
  2. Chevron Corporation (NYSE:CVX) reported an impressive quarterly beat, its highest in eight years, as energy prices continue to grow rapidly. The company’s profit of $2.96 per share is notable lift from analyst’s estimated $2.21. CVX has been guided higher by the 10-day moving average over the last few months and now sports a 69% year-over-year lead. In electronic trading, CVX was last seen up 1.4%.
  3. Apple Inc (NASDAQ:AAPL) is down more than 3% in early trading, after the company posted quarterly earnings that were in-line with analyst estimates, but disappointed with a revenue miss. This marked the company’s first revenue miss since 2016. Year-to-date, AAPL is up 14% heading into today.
  4. Drug giant Gilead Sciences, Inc. (NASDAQ:GILD) is suffering a 2% drop before the bell, lower despite sharing a quarterly earnings and revenue beat. The company’s antiviral Covid-19 treatment remdesivir helped profits, but sales still fell short of estimates. In 2021, GILD has tacked on 15.5%.
  5. Today will bring personal income and consumer spending data, the personal consumption expenditures (PCE) price index, the employment cost index, the consumer sentiment index, and the Chicago purchasing managers' index (PMI). 

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Overseas Markets React to Big Tech

Asian markets were mixed on Friday, as Apple (AAPL) suppliers in the region dragged down the tech market. The Nikkei in Japan rose 0.3%, China’s Shanghai Composite added 0.8%, the Hong Kong Hong Kong Hang Seng lost 0.7%, and the South Korean Kospi shed 1.3%. 

Big Tech is weighing on European markets, too, while several major companies in Europe also roll out earnings. Meanwhile, inflation in the euro zone hit a 13-year high of 4.1% in October. In response, the French CAC 40 is off 0.4%, the German DAX is down 0.7%, and the London FTSE 100 is down 0.4% lower. 

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