Pre-Market Stock Preview: U.S. Stock Index Futures Tumbles as Amazon.com Tanks on Disappointing Earnings Results

Morning Markets

• Sep S&P 500 futures this morning are down -0.69%, as a -6% plunge in Amazon.com in pre-market trading stokes concern about slowing growth at mega-cap technology companies.   S&P futures recovered from their worst levels this morning on better-than-expected U.S. economic news.

• Global stocks are weaker.  The Euro Stoxx 50 index today is down -0.51% as weakness in technology stocks weighs on the overall market.  Losses in European stocks were limited after Eurozone Q2 GDP rose +2.0% q/q and +13.7% y/y, stronger than expectations of +1.5% q/q and +13.2% y/y.  Japan’s Nikkei Stock index closed down -1.80% at a 6-3/4 month low as the worsening pandemic in Japan prompted the government to extend its state of emergency to areas surrounding Tokyo until the end of August.

• U.S. June personal spending rose +1.0% m/m, stronger than expectations of +0.7% m/m. June personal income unexpectedly rose +0.1% m/m, stronger than expectations of -0.3% m/m.

• The U.S. June core PCE deflator rose +3.5% y/y, weaker than expectations of +3.7% y/y but still the fastest pace of increase in nearly 30 years.

• The U.S. Q2 employment cost index rose +0.7% q/q, weaker than expectations of +0.9% q/q.

Pre-Market U.S. Stock Movers

• Amazon.com (AMZN) tumbled more than -6% in pre-market trading after it reported Q2 net sales of $113.10 billion, below the consensus of $115.06 billion, and forecast Q3 net sales of $106.0 billion-$112.0 billion, weaker than the consensus of $118.7 billion. 

• Pinterest (PINS) plunged -20% in pre-market trading after it reported 454 million active monthly users in Q2, well below the consensus of 484.4 million.

• Texas Roadhouse (TXRH) dropped more than -5% in pre-market trading after raising its full-year commodity cost inflation expectations estimate to 7% from 4%.

• First Solar (FSLR) fell more than -1% in premarket trading after it cut its full-year EPS estimate to $4.00-$4.60, the midpoint below consensus of $4.41, citing increased freight costs.

• Gilead Sciences (GILD) slid nearly -2% in pre-market trading after it narrowed its full-year adjusted EPS view to $6.90-$7.25 from a prior view of $6.75-$7.45.

• Trivago NV (TRVG) rose more than +4% in pre-market trading after it reported Q2 revenue of 95.5 million euros, well above the consensus of 73.9 million euros.

• Weyerhaeuser (WY) is up more than +1% in pre-market trading after it reported Q2 net sales of $3.14 billion, stronger than the consensus of $3.10 billion.

• Chevron (CVX) climbed nearly +2% in pre-market trading after it reported Q2 adjusted EPS of $1.71, better than the consensus of $1.60, and said it was resuming its share buyback program.

Today’s U.S. Earnings Reports (7/29/2021)

AbbVie Inc (ABBV), Aon PLC (AON), Caterpillar Inc (CAT), Cboe Global Markets Inc (CBOE), Cerner Corp (CERN), Charter Communications Inc (CHTR), Chevron Corp (CVX), Church & Dwight Co Inc (CHD), Colgate-Palmolive Co (CL), Exxon Mobil Corp (XOM), IDEXX Laboratories Inc (IDXX), Illinois Tool Works Inc (ITW), Johnson Controls International (JCI), Linde PLC (LIN), LyondellBasell Industries NV (LYB), Newell Brands Inc (NWL), Procter & Gamble Co/The (PG), VF Corp (VFC), Weyerhaeuser Co (WY), 

WW Grainger Inc (GWW).