Dow Jones futures fell slightly Friday morning, S&P 500 futures rose modestly while Nasdaq futures jumped, with Amazon.com (AMZN) and Snap earnings in focus and the January jobs report on tap.
The S&P 500 and Nasdaq Composite jumped Friday to finish their best week of the year, as continued strength in earnings reports extended the tech-led rebound from the January rout.
Dow Jones Futures
Dow Jones futures fell 0.4% vs. fair value. S&P 500 futures climbed a fraction. Nasdaq 100 futures rose 0.7%, far off Thursday night highs of nearly 2%. AMZN stock is a big S&P 500 and Nasdaq component.
The January jobs report will surely have a big impact on Dow futures and Treasury yields.
At the close in NYSE, the Dow Jones Industrial Average fell 0.06%, while the S&P 500 index added 0.52%, and the NASDAQ Composite index climbed 1.58%.
The biggest gainers of the session on the Dow Jones Industrial Average were Salesforce.com Inc (NYSE: CRM ), which rose 3.04% or 6.46 points to trade at 219.23 at the close. JPMorgan Chase & Co (NYSE: JPM ) added 2.60% or 3.86 points to end at 152.56 and Goldman Sachs Group Inc (NYSE: GS ) was up 2.43% or 8.72 points to 367.60 in late trade.
The 10-year Treasury yield jumped 6 basis points to 1.83%, not far from recent two-year highs. The Bank of England raised rates for a second straight month. Meanwhile, the European Central Bank said it would end asset purchases in March, with ECB President Christine Lagarde striking a hawkish tone in post-meeting comments, offering the first hints of possible rate hikes.
U.S. crude oil prices rose 2.3% to $90.27 a barrel, moving above $90 for the first time since 2014. Natural gas futures tumbled Thursday after a sharp gain Wednesday.
Other Stocks
Besides Meta, which fell 26.7%, Amazon was down 7.7% ahead of its earnings release set for after the close.
Meta late Wednesday had reported weaker-than-expected profits following a loss of one million daily users globally on its signature social media platform.
The dramatic sell-off is the latest to confront a big tech firm after a similar liquidation of Netflix shares last month. Other tech giants such as Apple and Google parent Alphabet have rallied after results.
All three major indices were decisively negative about 45 minutes before the close, threatening a four-day winning streak.
The sharp drop in Meta Platforms, as well as that of Netflix after its earnings last month. It could signal weakness under the surface and have bearish implications for the market, according to Adam Sarhan, CEO of 50 Park Investments.
“Some of the megacap tech stocks are trading almost like penny stocks. That is a massive shift under the surface from an overtly bullish market, to a market that could be topping and or the beginning of a bearish phase on Wall Street,” he said.