Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 01, 2023 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures fell slightly Friday morning as investors digested the latest round of corporate earnings, including results from Amazon.
Dow Jones Industrial Average futures fell by 40 points, or 0.12%. S&P 500 and Nasdaq 100 futures slipped 0.11% and 0.15%, respectively.
Amazon shares were down about 2% in extended trading after initially rising following the online retailer’s first-quarter results. Intel shares climbed more than 4% after the semiconductor firm beat estimates on the top and bottom lines.
Meanwhile, Snap tumbled 18% in extended trading following a revenue miss. Pinterest shares fell 14% after issuing disappointing second-quarter revenue growth expectations.
Investors are coming off a strong trading session for the major averages, with the Dow Jones Industrial Average and S&P 500 notching their best day since January. Meanwhile, the Nasdaq Composite jumped 2%, posting its best day since March.
Those gains come after a better-than-expected report from Meta fueled a rally in tech stocks. Investors appeared to shake off light GDP data that could signal the Federal Reserve’s rate-hiking campaign may soon come to an end.
Still, some traders expressed skepticism that this earnings season is strong, even as results largely come in better than investors feared. Of the 235 S&P 500 companies that have reported earnings, about 79% have reported positive surprises, according to FactSet data.
“It doesn’t take us out of an earnings recession. We’re still in an earnings recession. And this calendar quarter, which we are in right now, we are going to see the most intense economic contraction and potentially the deepest earnings contraction of what will be a sequential three quarter decline,” Virtus Investment Partners’ Joseph Terranova said Thursday on CNBC’s “Closing Bell.”
On the economic front, traders will watch for the latest personal income and spending data, due out Friday before the open. Economists polled by Dow Jones are expecting core prices to have risen 0.3% in March from the prior month. That’s in line with the prior reading.
The final reading of the April consumer sentiment data is also set to be released Friday at 10 a.m. ET. It’s expected to show a reading of 63.5, which is the same as the previous readout.
The Dow is on pace to come out on top in April, with a roughly 1.7% gain as of Thursday’s close. The S&P 500 is about 0.6% higher this month. Meanwhile, the Nasdaq Composite is set to be the biggest laggard, down 0.65% this month.