Premarket: Apple is red

From the Wall Street Journal’s "Stock Futures Fall After Amazon Loss" posted early Friday:

U.S. stock futures slipped, led by declines in the technology sector, afterAmazon. com posted its first quarterly loss in seven years.

Futures for the S&P 500 fell 0.7% Friday. Contracts for the tech-focused Nasdaq-100 receded 1% and futures for the Dow Jones Industrial Average declined 0.3%. The moves mark a reversal from Thursday, when technology shares led gains as investors cheered a solid earnings report from Meta Platforms.

That optimism waned after Amazon posted its loss, a result that reflected broad economic trends related to a slump in online shopping, higher costs from inflation and supply-chain woes, and market jitters over electric-vehicle startups. Amazon shares tumbled 8.5% in premarket trading. Moves in large technology companies can have outsize impacts on major stock indexes due to their higher weighting relative to other stocks.

Technology shares have come under pressure this month as expected further rate rises from the Federal Reserve draw investors toward bonds and a lockdown in Shanghai adds disruption to the global supply chain. The Nasdaq Composite was down 9.5% this month through Thursday’s close, on course for its largest one-month percentage decline since March 2020.

Apple cautioned Thursday that the resurgence of Covid-19 in China threatens to hinder sales by as much as $8 billion in the current quarter. Shares declined 2.4% premarket.

“The reality is that weeks into this lockdown, we’re going back to supply-chain disruptions which could impact inflation and which could put central banks in tough positions,” said Esty Dwek, chief investment officer at FlowBank. “We’d seen the beginning of improvements in supply chains but that’s likely to reverse if these lockdowns in China last longer.”

Charts: Yahoo!Finance sees a bearish price-crosses-moving-average pattern. Max pain stays at $167.50 with a call mountain at $175.

2 Comments

  1. Daniel Epstein said:
    Looking at the numbers this morning Apple is down around 2 dollars a share 1/2 an hour before the market opens. Not as big a move as many other stocks. The 7 dollars a share jump the day before seems like a buy the rumor sell the news kind of move. Much more important to my thinking is the lack of discussion about Amazon’s report.

    0
    April 29, 2022
  2. bas flik said:
    amazon should spinoff aws. ecommerce is not profitable business. 100billion sales and a loss. there is no margin and never will. ecommerce is competing on price in a transparent environment ending in a zero margin game. economy is about creating monopoly profits. if you fail to achieve this the end is near.

    1
    April 29, 2022

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