Amazon and Intel weigh on futures as oil jumps after Fed holds rates
Futures point lower as Amazon and Intel selloffs compound Alphabet's post-earnings slump and oil extends its October surge on Middle East supply fears.
Wall Street enters Friday on the back foot after a volatile 48 hours. The S&P 500 closed Thursday at 7,720.39 (down 0.30%), the Dow Jones Industrial Average at 52,342.56 (down 0.25%) and the Nasdaq Composite at 26,184.73 (down 1.38%), with the Nasdaq’s decline concentrated in a handful of megacaps — the equal-weight S&P 500 ETF actually rose about 1.2% on the day, according to Yahoo Finance. That session followed Wednesday’s Federal Reserve decision to hold the benchmark rate at 3.75%-4.00% in a 10-2 vote; Cleveland Fed President Beth Hammack and Governor Lisa Cook dissented in favor of a quarter-point hike, a hawkish split that Chair Kevin Warsh said was unrelated to next week’s midterm elections, per CNBC and CNN.
Futures are pointing lower again this morning as a wave of Big Tech earnings lands unevenly. Amazon (AMZN) fell roughly 7% in premarket trading after third-quarter revenue and earnings per share came in just below Wall Street estimates and its fourth-quarter sales guidance of $240 billion-$247 billion landed slightly under consensus, even as AWS revenue grew 39% and operating income hit a record $28.1 billion, Yahoo Finance and the Motley Fool reported. Intel (INTC) tumbled further after the bell — reports from Investing.com put the drop as high as 17%-21% — after beating on earnings per share but guiding to weaker near-term results, citing a factory disruption in Israel, soft PC demand and heavy 2027 capital spending needs. Microsoft (MSFT) was the exception, rising about 2.6% premarket on 48% Azure growth, while Apple (AAPL) was little changed. Alphabet (GOOGL) continued to slide following Wednesday’s earnings, with CNBC describing the stock as facing one of its largest post-earnings losses on record, which has kept pressure on Nasdaq futures.
Crude oil is also in focus: Brent crude traded near $116 a barrel and WTI near $103, each up roughly 1% overnight, as reports of attacks on Saudi energy facilities including the Ras Tanura and Rabigh refineries stoked fresh supply concerns, according to coverage cited by Fortune and HDFC Sky. Both benchmarks are tracking double-digit percentage gains for October. Markets will look to Friday’s data and any further Fed commentary for direction after a week dominated by the rate decision and hyperscaler earnings.
What to watch today
- The Chicago Business Barometer (Chicago PMI) for October is due at 9:45 a.m. ET. (MNI Markets calendar)
- Trading continues to digest Thursday’s earnings from Amazon, Intel and Alphabet after sharp post-report moves in premarket trading. (CNBC / Yahoo Finance)
- Crude oil markets remain focused on reports of attacks on Saudi Arabian refining facilities that have pushed Brent and WTI higher. (Fortune / HDFC Sky)
- Investors are watching for further Fed commentary after Wednesday’s 10-2 split decision to hold rates, with two officials dissenting in favor of a hike. (CNBC / CNN)