Audio Sources - Full Text Articles

Futures dip as Amazon warns of slowdown in cloud segment


U.S. stock index futures dipped on Friday as Amazon’s warning about a slowdown in its cloud business and downbeat forecasts from Snap and Pinterest dented Wall Street sentiment after a rally in the previous session. Inc (AMZN.O) shares slipped 1.1% in premarket trading as the company signaled its cloud growth would slow further, overshadowing its better-than-expected quarterly results.

Snapchat-owner Snap Inc (SNAP.N) tumbled 18.9% as it warned next quarter results could miss Wall Street targets, while Pinterest Inc dropped 13.4% after the image-sharing platform forecast second-quarter revenue growth below analysts’ estimates as advertising spending declines.

The weak updates followed stronger-than-expected earnings from big technology and growth companies this week including Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O) and Meta Platforms Inc (META.O) which led analysts to improve first-quarter profit estimates for S&P 500 companies.

The main U.S. indexes ended up sharply on Thursday, with the benchmark S&P 500 (.SPX) logging its biggest one-day percentage gain since early January.

Analysts expect first-quarter earnings for S&P 500 companies to fall 2.4% year-over-year compared with a forecast for a 5.1% fall at the start of April.

Oil giant Exxon Mobil Corp (XOM.N), Colgate-Palmolive Co (CL.N) as well as Charter Communications Inc (CHTR.O) are among the companies set to report results before the opening bell.

Personal consumption expenditure index reading, the Fed’s preferred inflation gauge, for March is due at 8:30 a.m. ET (1230 GMT).

Data on Thursday showed U.S. economic growth slowed more than expected in the first quarter, while plunging consumer confidence in April heightened the risk that the economy could fall into recession this year.

Still, the Federal Reserve is expected to raise interest rates by 25 basis points at its May 2-3 meeting, potentially the last hike in the U.S. central bank’s fastest monetary policy tightening cycle since the 1980s.

At 06:08 a.m. ET, Dow e-minis were down 105 points, or 0.31%, S&P 500 e-minis were down 16 points, or 0.39%, and Nasdaq 100 e-minis were down 48.75 points, or 0.37%.

Chipmaker Intel Corp (INTC.O) gained 4.0% after the it said gross margins will improve in the second half of the year.

First Republic Bank (FRC.N) rose 9.7% as U.S. officials are coordinating urgent talks to rescue the beleaguered lender, three sources familiar with the matter told Reuters.

The Fed will publish at 11 a.m. ET (1500 GMT) its internal review of its supervision of Silicon Valley Bank, whose failure set off a broader loss of investor confidence in the banking sector.

Cloudflare Inc (NET.N) tumbled 23.9% on the cloud services provider’s downbeat revenue forecast.

Related Galleries:

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 10, 2023. REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 19, 2023. REUTERS/Brendan McDermid/File Photo