Home Business Nasdaq set to open higher on positive forecasts from Apple, Amazon

Nasdaq set to open higher on positive forecasts from Apple, Amazon

4 min read
Comments Off on Nasdaq set to open higher on positive forecasts from Apple, Amazon

Article content

The Nasdaq index was set to open higher on Friday, as positive forecasts from Apple and Amazon indicated resilience in mega-cap companies to survive an economic downturn, with hopes of a less aggressive monetary policy boosting sentiment.

Apple Inc shares rose 2.4% in premarket trading after the iPhone maker said parts shortages are easing and that demand for iPhones is unceasing despite consumers tightening other spending.

Amazon.com Inc shot up 10.7% after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.

Article content

High-growth stocks also benefited from the yield on benchmark 10-year Treasury notes retreating 0.2% .

“Big tech has been a mixed bag this earnings season, but Amazon proved that the strong can survive even the toughest environments,” said Laura Hoy, equity analyst at Hargreaves Lansdown.

Meanwhile, investor worries of bigger interest rate increases eased a bit on Thursday after data showed the American economy contracted for the second straight quarter.

“The Fed is really between a rock and a hard place because are they going to fight inflation or are they going to cave to slower economic growth,” said Paul Nolte, portfolio manager at Kingsview Investment Management.

Toward the end of a power-packed week, all three of Wall Street’s main indexes were set for their second straight weekly gain.

Article content

Futures briefly pared back gains after data showed U.S. consumer spending increased more than expected in June, with monthly inflation surging by the most since 2005.

At 8:46 a.m. ET, Dow e-minis were up 13 points, or 0.04%, S&P 500 e-minis were up 17 points, or 0.42%, and Nasdaq 100 e-minis were up 86 points, or 0.68%.

The Dow looked set to be weighed by Intel Corp , which tumbled 11% after it cut annual sales and profit forecasts and missed second-quarter estimates as demand for its chips used in personal computers cools.

Shares of Chevron Corp and Exxon Mobil rose 2.9% and 2.1%, respectively, after the oil majors posted their biggest quarterly earnings on the back of soaring energy prices.

Phillips 66 rose 0.9% after the refiner reported a jump in second-quarter profit, boosted by surging demand for fuel and refined products amid tight supplies.

Procter & Gamble Co fell 3.6% after predicting full-year earnings below analysts’ estimates as the consumer goods giant struggles with surging transportation and commodity costs. (Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur)

Source link

Load More Related Articles
Load More By 
Load More In Business
Comments are closed.

Check Also

year JGB yield falls, longer-term notes keep rising

Article content TOKYO — The Japanese government bond market moved in mixed directions on W…