Saturday, February 24

Wall Street futures mixed after jobs data

Futures are trading lower as investors digest quarterly company reports released in recent sessions and after the Nasdaq posted its worst session in more than a year. At this time, all attention is focused on some of the technological values ​​that continue to shoot up after publishing their results. This is the case of Amazon, which rises 12.4%, Pinterest scores more than 14% while Snap-A has risen 50% in pre-opening after achieving its first profitable quarter.

The e-commerce giant Amazon obtained a net profit of 33,364 million dollars (29,392 million euros) in 2021, which represents an increase of 56.4% compared to the profits recorded a year earlier, as reported by the multinational, which will raise the price of its Prime service in the United States for the first time since 2018.

Some movements that come a day after the fall of technology companies caused by the disappointing earnings report of the parent company of Facebook, Meta. The company’s weak results sent mega-cap shares lower on Thursday and weighed on equity markets.

The indices try to overcome the fall caused by Facebook…

Following the quarterly results of Facebook, “everyone gave up and sold the whole sector. That was clearly the wrong reading,” Lightshed Partners’ Rich Greenfield said on CNBC’s “Closing Bell” show Thursday. “What’s going to be really interesting is how investors start to look at these companies more individually versus the whole sector”.

On Thursday, the NASDAQ 100 fell 3.7% for its worst daily performance since September 2020. The S&P 500 had its worst day in nearly a year, slipping 2.4%. The Dow Jones industrial average fell 518.17 points.

“The sharp drop in FB’s market capitalization and the accompanying drag on the S&P500 Index is a stark reminder of the high concentration of mega-cap tech stocks in the S&P 500 – and the vulnerabilities that such concentration brings,” said Chris Hussey. from Goldman Sachs in a note on Thursday. In fact, To put into perspective the collapse that Meta’s shares had yesterday, to point out that the company lost 230,000 million dollars of capitalization during the session. In this sense, it should be noted that there are only 30 companies in the S&P 500 that capitalize more than that amount.

On the other hand, Ford Motor has missed estimates by a wide margin, posting a profit of 26 cents per share, well below the consensus of 45 cents. Shares fell 6% in premarket trading.

Pinterest beat Wall Street forecasts by 4 cents with an adjusted quarterly profit of 49 cents per share. It also reported better-than-expected earnings. The social site also wrapped up its first profitable year amid strengthening ad revenue. Pinterest shoots up 14.4% in the market.

News Corp it beat estimates for top and bottom revenue in its latest quarter, and the media company benefited from growth in digital real estate services, book publishing and its Dow Jones division. News Corp rose 6.9% in premarket trading.

Skechers came in 10 cents above analyst forecasts with an adjusted quarterly profit of 43 cents per share, and the shoe retailer also posted better-than-expected revenue as it successfully bet on demand for casual and comfortable footwear. The shares rose 7.9% in the previous market.

…and with oil pointing to $100

All in a session in which the market’s attention is focused on the non-farm payroll report for January, which was expected to show an increase of 150,000, according to a Dow Jones estimate. Even many analysts believed that the data would be negative. Contrary to what the market expected, the employment data in the United States for the month of January came as a surprise. Last month, 467,000 non-farm payrolls were created.

The unemployment rate is practically the only negative note: it rises one tenth, to 4.0%. Also good news in private non-farm payrolls, with the creation of 444,000. The forecast was also for 150,000 new ones, much less than in December. The average income per hour, in year-on-year terms, rose 5.7% and the monthly figure was up 0.7%. In both cases, higher than expected.

Meanwhile, Treasury yields rise this Friday. The yield on the benchmark 10-year Treasury bond rose 1 point to 1.838%. The 30-year Treasury bond yield added 1 point to 2.157%.

Meanwhile, US oil futures have broken above $90 a barrel for the first time since 2014, raising concerns about inflation. At this time, the barrel of Brent crude climbs 1.7%, to 92.81 dollars, while West Texas is down 1.9% and is trading at 92 dollars.

Gold advanced 0.3% to $1,811.20 on a day in which Bitcoin rose more than 2.8% to $37,833.