U.S. stock index futures dropped on Friday after disappointing results from megacap growth companies including Apple and Amazon. Dow futures fall 200 points as hot January jobs number is likely to keep the Fed in hiking mode.
Market Snapshot
At 8:40 a.m. ET, Dow e-minis were down 215 points, or 0.63%, S&P 500 e-minis were down 50 points, or 1.2%, and Nasdaq 100 e-minis were down 250 points, or 1.95%.
- Nonfarm payrolls increased by 517,000 for January, above the Dow Jones estimate of 187,000. The unemployment rate fell to 3.4% vs. the estimate for 3.6%.
Pre-Market Movers
Apple was down 1.5% in premarket trading after the iPhone maker reportedfiscal first-quarter earnings and salesthat missed Wall Street estimates. Revenue of $117.2 billion fell 5% from a year earlier, marking the first quarterly revenue decline for Apple in nearly four years.
Sales in the company’s iPhone, Mac and wearables segments, in particular, came up well short of expectations.
Google parent Alphabet(GOOGL) reportedslowing revenue growth in the fourth quarter and an earnings miss,sending the stock down 3.5% in premarket trading. An advertising slowdown weighed on the results.
Amazon.com was falling 4% after the tech and online retailing giant reportedbetter-than-expected fourth-quarter sales growthbut weaker-than-anticipated profit, due largely to a loss on the company’s stake in electric-truck maker Rivian(RIVN). Revenue at the company’s Amazon Web Services unit fell shy of expectations.
Amazon’s first-quarter revenue outlook, meanwhile, was well below Wall Street estimates.
Auto maker Ford reportedfourth-quarter earningsthat missed analysts’ expectations and the stock was tumbling 6.6% in premarket trading. Fordsaid it expects to generate operating profit in 2023 of about $9 billion to $11 billion; Wall Street had projected operating profit this year of about $10 billion.
Ford also announced a special dividend of 65 cents a share, and said it had sold almost all of its stake in Rivian.
Nordstrom surged more than 26% after The Wall Street Journal reportedactivist investor Ryan Cohen has taken a big stake in the retailer. The Journal reported that Cohen has become one of the top five non-family shareholders of the company.
Qualcomm was down 2.6% after the chip company issueda revenue outlookbelow expectations, citing deteriorating demand for smartphones and a challenging macro environment.
Clorox was rising 4.2% after the cleaning products company posted better-than-expected fiscal second-quarter profit.
Gilead Sciences was up 4% after fourth-quarter earnings and sales beat Wall Street expectations. The pharma company also raised its dividend.
Atlassian fell nearly 10%. The software company’s fiscal second-quarter loss was wider than a year earlier.
Starbucks was down 2% after the coffee chain reportedfiscal first-quarter earningsthat missed Wall Street forecasts.
Market News
Tesla Shipments of China-Made Cars Climbed 18% in January
Tesla Inc.’s deliveries from its Shanghai plant rose in January despite the typically quieter Lunar New Year break, spurred by aggressive price cuts on the two models it makes in China.
The US electric vehicle maker shipped 66,051 China-built cars in January, according to preliminary data from China’s Passenger Car Association released Friday. That’s an 18% increase from December.
Nordstrom Stock Surges on Report Activist Investor Ryan Cohen Has a Stake
Nordstrom was up 28% in premarket trading. The Wall Street Journal reported that Cohen, known for sparking big jumps in meme stocks such as GameStop a few years ago, has become one of the top five nonfamily shareholders of the company.
Cohen plans to recommend changes to the board to enact cost cutting that will reverse the stock’s poor performance, the Journal said, citing people familiar with the matter. His aim is to replace at least one director. On the current board, he may target former Bed Bath & Beyond (BBBY) chief executive Mark Tritton for removal, the people said.
NIO Releases Official Incentive Package Over Reported Big Discounts
NIO has released its official purchase discount package, with an executive again clarifying yesterday's media report after local media said the company was offering discounts of up to 100,000 yuan ($14,900).
The company's program released today includes subsidies for the purchase of its NT 1.0 platform models, additional discounts for stock vehicles and a small cash discount for the purchase of NT 2.0 platform models.
XPeng Launches Two Flagship EVs in Europe to Build Presence Overseas
Chinese EV automaker XPeng Motors officially launched two new models in Europe on Friday, the long anticipated G9 SUV, and an optimized P7 sedan featuring added range and faster charging.
Both XPeng (XPEV) EV models are on display at the eCar Expo in Stockholm this weekend, and will begin deliveries in four countries - Denmark, Norway, the Netherlands and Sweden - later this year.
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