5 things to know before the stock market opens on Friday, April 29
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Technical pressure on Wall Street premarket; data show that inflation is still high
Traders on the NYSE floor, April 28, 2022
Source: New York Stock Exchange.
2. Amazon falls due to a disappointing forecast and the slowest growth since the dot-com crash.
Andy Jassi, CEO of Amazon and later CEO of Amazon Web Services, speaks at the WSJD Live conference in Laguna Beach, California on October 25, 2016
Mike Blake | Reuters
Amazon fell about 10% in premarket after it announced Thursday evening weaker-than-expected first-quarter earnings and lower forecasts for the future. Revenue for the quarter increased 7% year-on-year to $116.4 billion, largely in line with expectations. It was the slowest sales growth in any quarter since the 2001 dot-com crash, and the second consecutive quarter of single-digit percentage growth.
- The cloud division of Amazon Web Services proved to be strong again. But not strong enough to engage in e-commerce, resulting in an additional $6 billion in spending due to rising inflation, declining labor productivity, and overcapacity.
3. Apple crashes after massive strike warning due to supply restrictions.
Tim Cook, CEO of Apple Inc., speaks at the Peek Performance virtual event in New York, USA on Tuesday, March 8, 2022.
Gabby Jones | Bloomberg | Getty Images
Apple fell 1% in premarket on Friday, the morning after warning that supply restrictions were due to Covid. could reduce sales by $4 billion to $8 billion in the third fiscal quarter. The forecast overshadowed strong second-quarter financial results, including earnings, revenue and gross margin.
- While analysts expected more from the services segment, it nevertheless reported record revenue. Product sales reached a record high for the March quarter. Investors also received a 5% dividend increase and $90 billion buyback approval. At the end of the quarter, Apple’s net cash position was $73 billion.
4 Musk Is Selling Nearly $4 Billion Of Tesla Stock To Buy Twitter
When the documents went public Thursday night, Musk tweeted, “No further sales of TSLA planned after today.” Tesla shares rose more than 1.5% in premarket trading on Friday. Twitter shares rose nearly 1% to over $49 each, below Musk’s cash offer of $54.20 per share.
5. Chevron and Exxon fall despite strong earnings on high energy prices.
Gas prices are displayed at a Chevron gas station on June 14, 2021 in Los Angeles, California.
Mario Tama | Getty Images
Gas prices are displayed at a gas station at an Exxon gas station in Washington on Tuesday, March 8, 2022.
Bill Clark | Cq-roll Call, Inc. | Getty Images
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