US open: Wall Street opens lower after Amazon, Apple disappoint
Fiona Cincotta October 29, 2021 2:00 PM
Wall Street heads lower after Apple & Amazon disappoint with earnings.
Dow futures -0.23% at 35650
S&P futures -0.6% at 4569
Nasdaq futures -0.94% at 15630
FTSE -0.35% at 7215
Dax -0.62% at 15588
Euro Stoxx -0.47% at 4211
Apple set to lose its most valuable company crown
US stocks are set to fall with the Nasdaq leading the charge lower after Amazon and Apple disappointed with results after the close. The Nasdaq had charged to a fresh all time high earlier in the session on the back of solid earnings, particularly from the tech sector. However, the mood soured after Apple and Amazon’s numbers.
Apple reported EPS $1.24 in line with forecasts. This market the first time since 2016 that Apple didn’t beat earnings forecast. Revenue came in at $83.36 billion, short of $84.51 billion forecast and up 29% year on year. Apple’s disappointing numbers are attributed to the supply chain constraints that it had been experiencing and amount to around a $6 billion hit. These supply chain issues include chip shortages and also manufacturing disruptions due to covid in Southeast Asia. The stock trades -3.5% pre-market.
Amazon all disappointed as growth slowed and costs rose. The e-commerce and cloud computing firm posted softer than expected Q3 sales amid a tight labour market and supply chains issues. Whilst the company has spent heavily to build out its fulfilment network, labour shortages and supply chain disruptions made it harder to meet demand. Amazon EPS came in at $6.12, well short of the $8.92 forecast on revenue of $110.8 billion up 15% from a year earlier.
These are very much supply side issues that the tech darlings of Wall Street had broadly escaped in earnings until now.
Helping the mood slightly US core PCE inflation numbers came in slightly weaker than expected but still very elevated at 3.6% expected ahead of the FOMC next week.
FX – USD rebounds
The US Dollar is rebounding after steep losses in the previous session following the weak GDP data. Softer quarterly growth forced investors to reprice the likelihood of a rate rise by the Fed
EUR/USD is paring gains from the previous session. EUR/USD trades lower despite after a slew of data. German GDP came in weaker than forecast at 1.8% QoQ, down from an upwardly revised 1.9% but missing forecasts of 2.2%. Meanwhile Eurozone GDP was stronger than forecast at 2.2% and in line with Q2. Eurozone inflation rose further rises to 4.1% hitting a new 13 year high. However, the ECB insisted yesterday that they still consider that inflation would be temporary.
GBP/USD -0.25% at 1.3760
EUR/USD -0.50% at 1.1626
Oil set for first weekly loss in 9 weeks
Oil prices are edging higher after a mixed performance in the previous session. Whist WTI booked mild gains, Brent settled slightly lower. Both benchmarks are set for weekly losses. For WTI crude oil this will mark the first weekly decline after 9 weeks of rising prices.
Concerns over increased supply from Iran should nuclear talks with the West go well, combined with higher than expected US crude oil inventories have seen investors book profits after a tremendous run higher in oil.
WTI crude trades +0.34% at $82.60
Brent trades +0.3% at $83.93
15:00 US Michigan sentiment
18:00 Baker Hughes rig count
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.