Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on January 26, 2023 in New York City.
Michael M. Santiago | Getty Images
Stock futures slid Friday after several high-profile earnings misses cast doubt on the recent market rally. Traders are also bracing from key U.S. labor data.
Futures for the S&P 500 lost 0.9%, while Nasdaq-100 futures fell 1.6%. Dow Jones Industrial Average futures dropped 116 points, or 0.3%.
Struggles of major tech stocks weighed on the market. Apple and Google-parent Alphabet both missed estimates on the top and bottom lines for their December quarters. Alphabet’s stock fell more than 3% in premarket trading, while Apple shares lost 4.3%. Amazon’s stock also dipped about 4.2% after the e-commerce giant’s report.
The earnings picture wasn’t much better outside of tech, as Ford and Starbucks also missed estimates. Those stocks fell 5.5% and 2.3%, respectively.
The moves in futures threatened to erase some large gains for the market on Thursday. The Nasdaq Composite rose 3.25% for its best day since November and is on track for a fifth-straight winning week. The S&P 500 gained 1.47%.
The Dow, however, finished Thursday slightly lower, weighed down by health-care stocks, but is still positive for the week.
“These last two days, and really all of January, have been really tough for those of us who were cautious,” SoFi head of investment strategy Liz Young said on CNBC’s “Closing Bell: Overtime” on Thursday.
“I don’t think that this deserves the green light. For earnings, this entire year, the story is going to be revenue, not as much about the bottom line. And revenues are dropping. We’ve heard that from everybody,” she added.
In addition to insight from major companies on earnings calls, Investors will get a key data point about the U.S. economy on Friday morning with the January jobs report. Economists polled by Dow Jones expect a jobs gain of 187,000 for January.