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Nasdaq Futures Soar on Big Tech Earnings

The PCE reading hit its highest level in 40 years

Deputy Editor
Jul 29, 2022 at 9:25 AM
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Stock futures are rising again on Friday, with strong earnings results from Big Tech staples Amazon.com (AMZN) and Apple (AAPL) helping futures on the tech-laden Nasdaq-100 Index (NDX) to a triple-digit lead. Meanwhile, Dow Jones Industrial Average (DJIA) futures are struggling to maintain a muted gain, and futures on the S&P 500 Index (SPX) are comfortably above fair value. On the data front, the personal consumption expenditures (PCE) price index rose 6.8% year-over-year in June, marking its largest 12-month jump since January 1982. The PCE is watched closely by the Federal Reserve as a key inflation gauge. 

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

  • The solar energy name that powered higher on yesterday's climate bill buzz. 
  • Healthcare stock hits lowest level since 1995.
  • Plus, 3 earnings reports from some of tech's heaviest hitters.

Futures Chart 2 July 29_2022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.45 million call contracts and 978,360 put contracts traded on Thursday. The single-session equity put/call ratio rose to 0.67, and the 21-day moving average stayed at 0.68.
  2. Shares of Amazon.com, Inc. (NASDAQ:AMZN) were last seen 11.1% higher in premarket trading, after the Big Tech behemoth reported better-than-expected second-quarter revenue. And though the company's quarterly earnings were lower than estimates -- thanks in large part to consequences from its $3.9 billion investment in Rivian (RIVN) -- it still issued a sunny third-quarter outlook. Year-to-date, AMZN is still down 26.7%.
  3. Meanwhile, a report from Intel Corporation (NASDAQ:INTC) showed the chip maker missed second-quarter earnings and revenue forecasts, due to supply chain constraints and delayed unveilings of new data center chips. The company's year-over-year revenue drop was its largest in more than a decade, which resulted in a weaker-than-anticipated current-quarter guidance. INTC is down 11.5% in electronic trading, and has already shed 25.2% in the last 12 months.
  4. Apple Inc (NASDAQ:AAPL) also threw its hat into the earnings ring, reporting fiscal third-quarter profits and revenue that beat Wall Street predictions. While earnings fell in the last year, the company still managed to see growth in its iPhone sales. AAPL is up 2.4% ahead of the open, putting it close to crossing the +10% year-over-year level.
  5. The week will end in a colossal batch of economic indicators.  Real disposable and nominal personal income, as well as real and nominal consumer spending are all due out. The Chicago purchasing managers' index (PMI) and the employment cost index are expected later that day, too, and the University of Michigan (UM) will also release both its final consumer sentiment and five-year inflation expectations. 

buzzjuly29

Markets in Europe Jump as Euro Zone Economy Accelerates

Asian markets were mostly lower today, with the exception of the South Korean Kospi, which rose 0.7%. Hong Kong’s Hang Seng fell 2.3%, amid pressure from tech and real estate stocks. Elsewhere, China’s Shanghai Composite dropped 0.9%, while Japan’s Nikkei shed 0.05%.

Meanwhile, European markets are on the rise midday, after economic data showing the euro zone’s economy accelerated 0.7% in the second quarter. London’s FTSE 100 is up 0.5% at last check, while the French CAC 40 and German DAX add 1.6% and 1.2%, respectively.

 

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