Finance News

Dow futures drop 150 factors as Apple and Amazon shares fall after revenue

Tim Cook, Apple CEO, delivers the keynote address during the 2020 Apple Worldwide Developers Conference (WWDC) at the Steve Jobs Theater in Cupertino, California on June 22, 2020.

Brooks Force | Apple, Inc. via Reuters

US stock futures fell overnight Thursday after some of the tech heavyweights came under pressure according to their quarterly reports.

The futures on the Dow Jones Industrial Average fell 150 points. The S&P 500 futures fell 0.7% and the Nasdaq 100 futures fell 1.0%.

Apple shares fell more than 4% in expanded trading after the tech giant saw iPhone sales decline 16% and gave investors no guidance for the quarter ahead. Amazon was down 1.5% even after the e-commerce giant reported third-quarter results with a big hit in the black.

Wall Street rebounded slightly on Thursday on better-than-expected US GDP and jobless claims data. The 30-share Dow gained more than 100 points on its first positive day in five years, while the S&P 500 rose 1.2% to end a three-day losing streak. The tech-heavy Nasdaq Composite gained 1.6%.

Still, the top averages are well on the way to their worst weekly performance in months. The Dow is down 5.9% since the start of the week, in line with its worst week since March 20th. The S&P 500 is down 4.5% this week on its way to its worst week since June 12th.

Volatility remained elevated as investors grappled with increasing new cases of the coronavirus in the US and abroad. The Cboe Volatility Index (VIX), also known as Wall Street's "fear measure," hit a high of 41.2 on Thursday, its highest level since June 15.

"The volatility of the pre-election market is not uncommon and has arisen from swirling questions about elections, COVID-19, and economic and earnings growth," said Paul Christopher, head of global market strategy at Wells Fargo, in a statement Thursday. "This indigestion caused declines in the S&P 500 index."

The Dow and S&P 500 are also set to decline for their second straight month as Wall Street closes a tumultuous October. The average of the 30 stocks is down 4% this month, and the S&P 500 is down 1.5%. The Nasdaq outperformed, rising just 0.2% over the same period.

Alphabet shares rose more than 7% in expanded trading after Google parent company released quarterly results that exceeded Wall Street expectations. Meanwhile, Twitter fell more than 14% after the social media company reported user growth that fell below expectations.

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