Bloomberg News reports that the US equity futures soared towards the end of a week of turbulence following reports from Amazon.com Inc. and Intel Corp. This has lifted some of the gloom that has settled following mixed reports from the big tech firms. There was a rise in crude oil as the United States carried out strikes in Syria on the facilities linked to Iran.
About price indices
NASDAQ futures added around 0.8% following a selloff. This pushed the index to the lowest since May. There was another effect of the drop that put the S&P 500 for correction. The gauge plunged by almost 10% from the peak in July. Intel surged 7.8% on Friday in premarket trading. Amazon, on the other hand, was up by 4.8%.
What does earnings season indicate?
The earnings season proves that there is a mixed bag till now. The investors are punishing the misses severely as compared to the rewarding beats. In the United States, 78% of the companies have reported beat estimates, in comparison to 57% in Europe, as stated by JPMorgan Chase & Co. strategists. However, more firms than usual have flagged lower consumer demand aside from the declining economic ecosystem. Data on Thursday implied pressures have continued to dissipate in the United States despite economic growth being solid.
Hereafter, the focus has turned to raft reports, which include preferred measures of the Federal Reserve related to the underlying price pressures. This is to solidify the bets that the central bank is supposed to halt next week. Aside from the same, the traders will monitor the earnings from the oil stalwarts including Exxon Mobil Corp as well as Chevron Corp.
The resilient growth in the US and the earnings beaten by some of the top tech giants offer a long-awaited respite for investors who are stressed. The same was revealed by Hebe Chen, the analyst at IG Markets, Melbourne.
Stoxx Europe 600
The Stoxx Europe 600 slid as the earnings continued to annoy, as reported by Bloomberg News. Sanofi, the French drugmaker dropped by as much as 16% following a miss in earnings and a downbeat outlook. On the other hand, UK lender Natwest Group Plc slid following cutting margin guidance.
The record label company, Universal Music Group NV for Taylor Swift plunged after missing some of the estimates. On the positive side, the energy majors advanced as Brent crude rose by more than 1% by recording the figure above $89 per barrel.
