US equity futures stumbled – if trading off session lows – and global shares tracked Asia lower on Friday as investors were worried by a jarring cut to Amazon’s guidance, China’s ongoing regulatory crackdown and rising Delta variant cases, but still remained on course for their sixth straight month of gains as overall solid corporate earnings and central bank largesse kept sentiment intact, while the dollar held near a one-month low and Treasuries rose. Nasdaq futures fell 1% after Amazon tumbled in premarket trading after its sales outlook missed expectations, adding to this week’s cautious forecasts from Facebook and Apple. At 7:15 a.m. ET, S&P 500 e-minis were down 25 points, or 0.56%, while Dow e-minis were down 79 points, or 0.23%.
The top overnight story was Amazon’s 6% plunge after the company said sales growth would slow in the next few quarters as customers ventured more outside the home. Shares of other tech giants including Netflix, Alphabet, and Facebook which benefited last year from people staying indoors due to COVID-19 restrictions, fell between 0.6% and 1.2%. Other notable premarket movers include:
- Caterpillar also fell 2.5% despite reporting a rise in second-quarter adjusted profit on the back of a recovery in global economic activity that has boosted demand for heavy machinery and construction equipment.
- Didi Global (DIDI) shares fall 6.7% after China said it plans to deepen anti-monopoly supervision of ride- hailing companies.
- Pinterest Inc sank 20.9% after saying U.S. user growth was decelerating as people who used the platform for crafts and DIY projects during the height of the pandemic were stepping out more.
- Chevron Corp rose 2% as it reported its highest profit in six quarters and joined an oil industry stampede to reward investors with share buybacks.