U.S. Stock-index futures remain lower after PCE inflation data, employment costs on Friday.
A measure that the Federal Reserve focuses on to gauge inflation rose at a robust pace in March, likely cementing the central bank's intention to raise interest rates by half a percentage in May.
The core personal consumption expenditures price index, which measures costs that consumers pay across a wide swath of items and accounts for how behavior changes in response to market dynamics, increased 5.2% from a year ago, according to the Bureau of Economic Analysis.
That was slightly below the 5.3% reading in February.
That was less than the 5.3% Dow Jones estimate. On a month-over-month basis, prices rose 0.3%, in line with the estimate.
Including volatile food and energy prices, the PCE index accelerated by 6.6%, the fastest pace since January 1982. Headline inflation was up 0.9% from February, much faster than the previous 0.5% increase.
Market Snapshot
At 08:35 a.m. ET, Dow e-minis were down 158 points, or 0.47%, S&P 500 e-minis were down 44 points, or 1.03%, and Nasdaq 100 e-minis were down 187.5 points, or 1.39%.
Pre-Market Movers
Apple — Apple's stock price dipped 2% after CFO Luca Maestri said supply chain issues would hurt third-quarter sales by as much as $8 billion. Still, many analysts on Wall Street remained positive on the company after its recent earnings report that topped expectations. One analyst said any weakness in the stock is a buying opportunity.
Amazon — Shares dropped more than 9% after Amazon disclosed weaker-than-expected revenue guidance for the second quarter. The tech giant also posted a $7.6 billion loss on its investment into Rivian, which lost more than half its value in the quarter.
Roku — Shares of Roku popped more than 4% after the digital media player manufacturer on Thursday reported sales that exceeded expectations in its recent quarter. Roku posted a revenue of $733.7 million. Analysts polled by Refinitiv were expecting $718 million.
Intel — Shares fell more than 3% after Intel issued weak guidance for its fiscal second quarter, overshadowing stronger-than-expected earnings for the previous quarter.
Alibaba, Pinduoduo, Baidu — Chinese technology stocks surged after policymakers in the country signaled an easing of the regulation on tech companies. Alibaba rallied more than 10%, Pinduoduo soared 15% and Baidu jumped more than 8%.
Bristol-Myers Squibb — The biopharmaceutical stock dipped 1.5% despite an earnings report that topped expectations. On Friday, Bristol-Myers Squibb disclosed it earned $1.96 per share on revenues of $11.65 billion. The company was forecasted to earn $1.91 per share on revenues of $11.36 billion, according to Refinitiv.
Honeywell International — Shares jumped 2% after Honeywell reported earnings that surpassed expectations. Honeywell posted earnings of $1.91 per share on revenues of $8.38 billion. Meanwhile, analysts surveyed by Refinitiv were forecasting $1.86 earnings per share on revenues of $8.29 billion.
Chevron — Shares dipped 1% even after Chevron posted better-than-expected results for the previous quarter. Chevron posted earnings per share of $3.36 per share on revenues of $54.37 billion. Analysts polled by Refinitiv were expecting $3.27 earnings per share on revenues of $47.94 billion.
Exxon Mobil — Exxon Mobil's stock price dipped 1% after the oil and gas company reported weaker-than-expected quarterly results. The energy company earned $2.07 per share, lower than Refinitiv estimates of $2.12 earnings per share. Exxon Mobil reported revenues of $90.5 billion, compared to a Refinitiv forecast of $92.7 billion.
Market News
Apple Sees Bigger Supply Problems After Strong Start To Year
Apple’s second-quarter sales and profit topped analysts’ estimates, fueled by strong demand for the iPhone and digital services. The company also announced $90 billion in new stock buybacks. Bloomberg Intelligence's Anurag Rana reacts to the numbers on "Bloomberg Triple Take."
Apple forecast bigger problems as COVID-19 lockdowns snarl production and demand in China, the war in Ukraine dents sales and growth slows in services, which the iPhone maker sees as its engine for expansion. The news outweighed record profit and sales for Apple's fiscal second quarter, which ended in March.
Amazon Results And Outlook Fall Short As Warehouse, Fuel Costs Soar
Amazon.com Inc delivered a disappointing quarter and outlook on Thursday as the e-commerce giant was swamped by higher costs to run its warehouses and deliver packages to customers.
Amazon's forecast shows hiking the price of its fast-shipping club Prime last quarter may not be enough to prop up its profit. The company expects to lose as much as $1 billion in operating income this quarter, or make as much as $3 billion. That's down from an operating profit of $7.7 billion in the same period last year.
Musk Sells Tesla Shares Worth $4 Bln, Says No More Sales Planned
Tesla Inc Chief Executive Officer Elon Musk sold $4 billion worth of shares in the electric vehicle maker, U.S. securities filings showed on Thursday, in sales likely aimed at helping finance his planned purchase of Twitter Inc.
Musk said in a tweet that there are "no further TSLA sales planned after today." He sold 4.4 million shares on Tuesday and Wednesday, according to the filings, equating to 2.6% of his stake in the company.
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