US stock futures moved lower ahead of Friday’s open, and mega-cap tech stocks underperformed in premarket trading, pointing to a downbeat end of the week in Wall St.
S&P 500 futures (^GSPC) were down 0.7%, while Dow Jones Industrial Average (^DJI) futures fell 0.4%. Hi-tech Nasdaq Composite (^IXIC) contracts fell 1.2%.
The yield on the benchmark 10-year US Treasury note rose as much as 3.7% on Friday morning. The dollar index rose 0.2% to trade at $103.40. Crude oil jumped on news that Russia would cut production, and benchmark US WTI futures rose more than 2% in early trading.
Stocks ended the day lower on Thursday, reversing gains earlier in the day’s trading session as traders scrutinized more corporate earnings and economic data.
The S&P 500 has seen a patchy price action over the past week, losing more than 1%, after the Federal Reserve raised its short-term interest rate by a quarter of a percentage point. Data from Bespoke Investments shows most sectors are trading lower, except energy, which is up 1%, while communication services have been the weakest performers.
Meanwhile, low liquidity in the market fueled a move in bonds, as the bond market is revaluing higher terminal rates and fewer rate cuts in the second half of 2023 after last week’s hot jobs report, Fedspeak and the “return in car prices”, Andrew Tyler. , JP Morgan’s US market intelligence team, wrote in a note to clients.
On the macro front, investors will be anticipating the results of the University of Michigan consumer confidence survey on Friday morning, which could help further push the narrative of a cooling inflation.
In specific stock moves, shares of PayPal (PYPL) rose after the platform company released quarterly results after the bell on Thursday. PayPal’s total payment volume missed 2% of analysts’ expectations. Net income increased 6.7% year-over-year. PayPal’s adjusted earnings per share of $1.24 beat analyst expectations by 3%, helping drive stronger-than-expected guidance.
On the corporate side, President and CEO Dan Schulman announced his retirement from the company at the end of the year. Schulman will remain on the board of directors as the company searches for a successor.
Meanwhile, shares of Lyft (LYFT) plunged 30% after the rideshare company reported first-quarter earnings of $975 million, below consensus expectations of $1.09 billion. The adjusted net loss of $270.8 million was higher than the loss of $90.2 million for the same period a year ago.
Cloudflare (NET) shares rose 7% after the company reported earnings that beat analysts’ expectations.
Shares of Expedia (EXPE) fell before the opening bell after the travel company posted quarterly revenue of $2.62 billion, below expectations of $2.71 billion. Adjusted earnings per share of $1.26 fell short of the analyst consensus of $1.77.
Coinbase (COIN) shares fell Friday morning after rival Kraken faced $30 million regulatory penalties as part of a settlement with the Securities and Exchange Commission. The crackdown prompted Coinbase CEO Brian Armstrong to tweet his concern over “rumors” that the SEC “would like to get rid of crypto gambling in the US.”
Bitcoin sits at around $21,844 as of Friday morning, leading to the assumption that the digital asset “appears to have entered a correction phase,” said Craig Erlam, a senior market analyst at Oanda.
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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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