Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on January 26, 2023 in New York City.
Michael M. Santiago | Getty Images
Stock futures fell Friday after several high-profile earnings failures cast doubt on the recent market rally. Traders have also braced themselves for key US labor data.
S&P 500 futures were down 0.9% and Nasdaq 100 futures were down 1.6%. Dow Jones Industrial Average futures fell 116 points, or 0.3%.
The struggle of major tech stocks weighed on the market. Both Apple and Google’s parent company, Alphabet estimate error Top and bottom lines for the December quarter. Alphabet shares fell more than 3% in pre-market trading, while Apple shares fell 4.3%. Amazon’s stock also fell about 4.2% following the e-commerce giant’s report.
The earnings picture wasn’t great outside of technology, as Ford and Starbucks also underperformed estimates. These stocks were down 5.5% and 2.3% respectively.
The futures move threatened to erase Thursday’s big gains in the market. Nasdaq Composite rose his 3.25% to his highest since November 5 consecutive win weeksThe S&P 500 was up 1.47%.
However, the Dow closed slightly lower on Thursday, hit by healthcare stocks but still positive this week.
Liz Young, SoFi’s head of investment strategy, told CNBC’s “Closing Bell: Overtime” on Thursday, saying, “It’s been really tough for those of us who’ve been cautious these past two days, and actually all January. It was something.
“I don’t think this deserves a green light. When it comes to earnings, the story for the whole year is earnings, not the bottom line, earnings are declining. We’ve heard it from everyone,” she said. added.
In addition to insights from major companies on earnings releases, investors will have key data points for the U.S. economy on Friday morning. January job reportEconomists surveyed by Dow Jones expect an increase of 187,000 jobs in January.
