As investors digested the most recent batch of corporate earnings, including Amazon’s, U.S. stock futures declined marginally on Thursday evening.
Futures on the Dow Jones Industrial Average fell 24 points, or 0.07%. Futures on the S&P 500 and Nasdaq 100 declined by 0.12% and 0.24%, respectively.
After initially increasing in response to the online retailer’s first-quarter results, Amazon’s stock fell about 2% in extended trading. The shares of Intel increased by more than 4 percent after the semiconductor company surpassed revenue and earnings estimates.
Snap fell 18% in extended trading following a revenue shortfall.
Shares of Pinterest fell 14% after the company issued disappointing revenue growth projections for the second quarter.
The Dow Jones Industrial Average and the S&P 500 posted their finest trading day since January, according to investors. Meanwhile, the Nasdaq Composite posted its best day since March, rising 2%.
A better-than-expected report from Meta fueled a tech stock rally, which led to these gains. Investors appeared unfazed by weak GDP data that could indicate the Federal Reserve’s rate-hiking campaign will end shortly.
Nonetheless, some traders have expressed skepticism about the strength of this earnings season, despite the fact that results have largely exceeded investors’ expectations. According to FactSet data, approximately 79% of the 235 S&P 500 companies that have reported earnings have reported positive earnings surprises.
“It does not prevent a decline in earnings. We are still experiencing a decline in income. And this calendar quarter, which we are currently in, will see the most intense economic contraction and potentially the deepest earnings contraction of the sequential three-quarter decline, Virtus Investment Partners’ Joseph Terranova said Thursday on CNBC’s “Closing Bell.”
On the economic front, traders will focus on the latest personal income and expenditure data, which is scheduled to be released on Friday before the market opens. According to economists surveyed by Dow Jones, fundamental prices increased 0.3% in March compared to the previous month. This is consistent with the previous reading.
Friday at 10 a.m. ET, the final reading of the April consumer sentiment data will be released. The expected reading is 63.5, which is identical to the previous reading.
As of Thursday’s close, the Dow is poised for victory in April, with a roughly 1.7% increase. The S&P 500 is up approximately 0.6% this month. The Nasdaq Composite is expected to be the largest laggard this month, falling 0.65%.