Nasdaq 100, Dow Jones, S&P 500 News: Futures Rally Amid Amazon’s Earnings Beat, Market Jitters

Highlights

U.S. Stock Futures Climb Amid Mixed Earnings and Market Volatility

U.S. stock futures are rebounding on Friday, signaling a potential reprieve from a tumultuous week. The move comes on the back of mixed corporate earnings and as the Nasdaq Composite Index remains deep in correction territory.

Mixed Earnings Bag

Amazon’s stock surged nearly 5% in after-hours trading as the e-commerce behemoth crushed analysts’ Q3 expectations, forecasting strong sales for the key holiday season. This optimism contrasts sharply with Ford, whose shares plunged 3% after missing Q3 earnings and withdrawing its full-year guidance due to a UAW strike.

Market Correction Concerns

The Nasdaq Composite has dropped over 12% from its peak in July, officially entering correction territory. Similarly, the S&P 500 is down almost 10% from its July high, hovering perilously close to correction levels. The Dow Jones Industrial Average has also seen six negative sessions in the last seven trading days.

Economic Indicators and Energy Sector

Investors are keenly awaiting Friday’s Personal Consumption Expenditures (PCE) data, the Fed’s preferred inflation metric, expected to rise by 0.3%. Additionally, energy giants Chevron and Exxon Mobil are slated to announce their earnings, coming hot on the heels of their recent multi-billion-dollar acquisitions. Chevron recently acquired Hess for $53 billion in stock, while Exxon Mobil bought shale rival Pioneer Natural Resources for $59.5 billion.

Short-term Forecast

The market’s near-term sentiment appears cautious, with indicators suggesting further downside risks. Despite the mixed earnings and looming economic data, the market is seemingly bracing for more uncertainty rather than a year-end rally. The S&P 500 is expected to hover around 4,000 by year-end, adding another layer of complexity to investor sentiment.

Technical Analysis

The S&P 500 Index is currently trading at 4137.22, which is below both its 200-day moving average of 4239.50 and its 50-day moving average of 4366.59. This places the index in a bearish posture from a medium-term perspective.

The index also sits below minor resistance at 4197.68 and is nearing minor support at 4050.56. The price action alone suggests weakened momentum.

Based on the technical indicators and the price being below both key moving averages, the current market sentiment for the S&P 500 can be characterized as bearish.