Economic news

Futures Little Changed after Mixed Tech Earnings

(Reuters) - U.S. stock index futures were muted on Wednesday after mixed results from large technology and internet giants, with investors awaiting the Federal Reserve’s monetary policy decision later in the day.

Apple Inc slipped 1.1% in premarket trading after it forecast slowing revenue growth, as global chip shortage bit into its ability to sell Macs and iPads.

Shares of Google parent Alphabet Inc jumped 3.8% after a surge in advertising spending powered its record revenue and profit.

Microsoft Corp gained too, up 0.5%, as a boom in cloud services helped it beat Wall Street expectations for revenue and earnings.

Worries around China’s regulatory crackdown across multiple sectors, including heavyweight technology companies, have weighed on investors’ mood this week. However, anticipation of stellar results from Wall Street’s technology majors had sent the three major indexes to record highs on Monday.

The Fed’s policy-meeting outcome is in focus as investors seek hints on the central bank’s plan to taper its large asset purchases programme, amid risks of a COVID-19 resurgence in the United States and rising inflation.

Fed Chairman Jerome Powell will hold a news conference following the 2 p.m. EDT (1800 GMT) release of the central bank’s latest policy statement.

At 6:48 a.m. ET, Dow e-minis were down 39 points, or 0.11%, S&P 500 e-minis were up 2.25 points, or 0.05%, and Nasdaq 100 e-minis were up 21.25 points, or 0.14%.

Among other companies that reported earnings, Starbucks Corp fell 2.8% after it lowered its fiscal 2021 forecast for China sales growth as COVID-19-related restrictions loom longer than expected.

Payment company Visa Inc slipped 1.6% despite beating estimates for quarterly profit.

Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V

Source: Reuters

To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree