4:05pm: US equities end higher
US stocks closed higher despite earnings misses by Apple and Amazon.
Amazon shares dropped after the e-commerce giant badly missed earnings and revenue expectations for the third quarter while issuing disappointing guidance for the critical holiday period.
Apple dropped after the tech giant’s quarterly revenue fell short of expectations amid larger-than-expected supply constraints on iPhones, iPads, and Macs. It was the first time Apple’s revenues have missed estimates since May 2017.
One the day, the Dow Jones Industrial Average increased by 115 points, or 0.32%, to 35,843, while the S&P 500 rose 0.22% to 4,606.
And the tech-heavy Nasdaq climbed 0.32% to 15,498.
12.05 pm: Nasdaq pulls back from record high as supply chain issues weigh
US stocks were mixed in noon trading as tech giants Apple and Amazon warned of a difficult fourth quarter due to labour and supply chain issues.
At midday, the Dow rose 35 points to 35,768, while the S&P 500 was off 4 points at 4,594 and the tech-heavy Nasdaq eased 31 points to 15,417.
“So far, I think it is fair to say that companies have managed to navigate these headwinds effectively, of course having the benefit of strong demand,” Edward Jones investment strategist Angelo Kourkafas said.
“But they are not immune to it. These input cost pressures will show up as reduced revenue or potentially lower profit margins,” Kourkafas added.
Apple Inc (NASDAQ:AAPL) and Amazon.com Inc shares both fell about 3%.
Other notable movers included shares of Starbucks Corporation, which slipped more than 7% after the hot beverages retailer’s revenue from China missed expectations.
11.25am: Proactive North America news headlines:
NEO Battery Materials appoints Mohini Sain and Ning Yan to its scientific advisory board
Ayurcann reports more than ten-fold increase in revenue for fiscal year 2021, completes Phase II expansion of Pickering, Ontario facility
Naturally Splendid Enterprises hails launch of NATERA plant-based entrees at Denny's locations in western Canada
Phunware now accepts Bitcoin for purchases of high performance computers provided by its Lyte unit
Major Precious Metals inks deal to receive up to C$5.4M in convertible debentures financing from L1 Capital
LexaGene Holdings completes first stage of US Army DEVCOM agreement for developing biothreat defense, preparing for second stage in Maryland
Harvest One Cannabis records improved year-on year net revenue and gross profit in fiscal year 2021
Playgon Games (TSX-V:DEAL, OTCQB:PLGNF) announces plans to raise up to $5M for major expansion push and product design
Huawei revenue drops over 30%, hit by US sanctions
Facebook Inc (NASDAQ:FB) rebrands as ‘Meta’, stepping towards creation of ‘Metaverse’
Panacea Life Sciences plans to capitalize on popularity of Denver airport to sell its CBD products
Nomad Royalty (TSX:NSR) Company further bolsters its portfolio, striking US$95M gold stream deal with Orion Mine Finance for Ontario project
9.43am: US shares start lower
US stocks started Friday in the red, as expected, as traders mulled over disappointing quarterly tech earnings.
In early deals in New York, the Dow Jones Industrial Average lost over 33 points at 35,696. The S&P 500 shed over 23 points at 4,573.
The tech-laden Nasdaq plunged around 109 points to stand at 15,338.
Apple shares fell 3.56% on the day as the iPhone maker missed Wall Street's expected revenues for the first time since May, 2017.
Online retail behemoth Amazon dropped nearly 5% as it reported a 15% uplift in sales for the third quarter - the lowest increase for seven years.
Despite these misses, US markets have been rising amid a solid earnings season. Reportedly, around half of S&P 500 companies have so far issued their results and more than 80% have beaten Wall Street earnings estimates.
6.35am: US shares poised to begin on back foot
US stocks look set to end the week on the back foot after quarterly reports released after-hours on Thursday from both Apple Inc (NASDAQ:AAPL) and Amazon Inc showed the impact of supply-chain problems and tight labor markets.
Futures for the Dow Jones Industrial Average were 0.2% lower in Friday, while those for the S&P 500 fell 0.5%, and contracts for the tech-laden Nasdaq-100 shed 0.9% weighed by disappointments from two of its biggest components.
Apple said that supply-chain disruptions were hindering the manufacturing of iPhones and other products and would bring increased challenges during the holiday season. Amazon posted lower-than-expected third-quarter sales and signaled that a tight labor market and supply-chain disruptions would weigh on its fourth-quarter earnings.
In premarket trading, Apple shares fell 3.5%, and Amazon.com shares retreated 4.8%. But, Facebook shares added 1.2% after the company changed its name to Meta to reflect growth opportunities beyond its namesake social-media platform in the digital realms known as the metaverse.
Overall, strong earnings have supported a stock rally in October with about 82% of the S&P 500 companies that have posted results beating analysts’ expectations, according to FactSet data.
Away from corporate matters, investors will also eye US consumer spending data, due out at 8.30am ET, which is expected to show an increase in September, driven both by higher prices and higher demand.