Nasdaq May Give Back Ground On Disappointing Results From Apple, Amazon

Stocks are likely to move to the downside in early trading on Friday, giving back ground following the advance seen in the previous session. The major index futures are currently pointing to a lower open for the markets, with the Nasdaq 100 futures down by 0.8 percent.

A negative reaction to quarterly results from tech giants Apple (AAPL) and Amazon (AMZN) is likely to weigh on the tech-heavy Nasdaq, which ended Thursday’s trading at a new record closing high.

Shares of Apple are moving notably lower in pre-market trading after the iPhone maker reported fiscal fourth quarter earnings that matched analyst estimates but weaker than expected sales amid supply chain issues.

Online retail giant Amazon is also seeing significant pre-market weakness after reporting much weaker than expected third quarter results.

Meanwhile, energy giants Chevron (CVX) and Exxon Mobil (XOM) may move to the upside after reporting better than expected quarterly earnings.

Chevron is a Dow component and an advance by the company’s stock may help limit the downside for the blue chip index.

On the U.S. economic front, a report released by the Commerce Department showed personal income decreased by much more than expected in the month of September.

The Commerce Department said personal income slumped by 1.0 percent in September after inching up by 0.2 percent in August. Economists had expected personal income to edge down by 0.2 percent.

The bigger than expected drop in personal income primarily reflected a decrease in government social benefits, both in unemployment benefits and “other” benefits.

Meanwhile, the report showed personal spending climbed by 0.6 percent in September after jumping by an upwardly revised 1.0 percent in August.

Economists had expected personal spending to rise by 0.5 percent compared to the 0.8 percent increase originally reported for the previous month.

Just after the start of trading, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of October.

The Chicago business barometer is expected to dip to 63.5 in October from 64.7 in September, although a reading above 50 would still indicate growth.

The University of Michigan is also due to release its revised reading on consumer sentiment in the month of October. The consumer sentiment index is expected to be unrevised from the preliminary reading of 71.4, which was down from 72.8 in September.

Stocks moved mostly higher during trading on Thursday, offsetting the pullback seen late in Wednesday’s session. With the upward move on the day, the tech-heavy Nasdaq and the S&P 500 reached new record closing highs.

The major averages saw further upside going into the close of trading. The Dow climbed 239.79 points or 0.7 percent to 35,730.48, the Nasdaq surged 212.28 points or 1.4 percent to 15,448.12 and the S&P 500 jumped 44.74 points or 1 percent to 4,596.42.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan’s Nikkei 225 Index rose by 0.3 percent, while Hong Kong’s Hang Seng Index slid by 0.7 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index has fallen by 0.7 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are down by 0.4 percent and 0.3 percent, respectively.

In commodities trading, crude oil futures are falling $0.48 to $82.33 a barrel after inching up $0.15 to $82.81 a barrel on Thursday. Meanwhile, after rising $3.80 to $1,802.60 an ounce in the previous session, gold futures are slumping $12.30 to $1,790.30 an ounce.

On the currency front, the U.S. dollar is trading at 113.80 yen versus the 113.58 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1633 compared to yesterday’s $1.1681.