Nasdaq futures drop after weak Amazon guidance adds pressure to technical defeat

Nasdaq 100 futures fell on Friday after Amazon’s disappointing earnings were added to the already compressed index.

Nasdaq-related futures were down 0.7%. Dow Jones Industrial Average futures rose 90 points, or 0.3%. S&P 500 futures lost 0.2%.

Amazon led the declines in pre-market trading, dropping 13% after the company’s publication Quarterly revenue is weaker than expected It issued disappointing fourth-quarter sales guidance.

Apple shares were also lower initially in extended trading after the company announced iPhone revenue weaker than expectedbut has since rebounded, last rising about 0.7%, and the company still beat Wall Street estimates for quarterly earnings and revenue.

Technical names were a dark cloud over the market again on Thursday. The Nasdaq Composite lost 1.6%, due to a defeat in Meta and other technology stocks after Facebook’s disappointing results. Meanwhile, the Dow rose 194.17 points, or 0.6%, for a fifth straight day of gains, boosted by a string of earnings from members and GDP data that hinted that inflation may be waning.

The stock market crashed this week with investors dumping technology stocks after results and poor prospects from Microsoft, Alphabet and Meta, and trading in economically sensitive stocks that will benefit if the US economy can avoid a recession.

“The weight of technology in the S&P 500 painted a more negative picture for the market yesterday than it actually did, with most market segments making good gains or only modestly lower,” said Tom Essaye, President of Stevens Report Research.

“Looking forward, we remain at the heart of earnings season and results will continue to dominate sector trade until the end of next week,” he said. “Outside of technology, it’s fair to say that this earnings season, so far, hasn’t been as bad as feared.”

The Dow and Standard & Poor’s are on track to finish the week up about 3% and 1.5%, respectively. The Nasdaq Composite will end down about 1%.

Friday brings a quieter day for earnings. Oil companies Chevron and Exxon outperformed expectations when reporting before the bell, sending shares up 2.5% and 2.4%, respectively.

Dow futures turned positive as investors pondered new data that showed inflation in line with expectations while consumer spending was better.