Today’s Market Insights: Tech Earnings, Economic Data, and Trading Setups
US stock futures pointed lower Thursday as traders digested earnings from major tech names and eyed upcoming economic data. Yesterday’s session saw a mixed close, as markets awaited earnings from Microsoft and Meta, followed by big-name reports from Amazon and Apple later today. Here’s a breakdown:
Market Movers and Key Earnings
- Alphabet (GOOGL) kicked off earnings season for the “Magnificent Seven” with impressive Q3 revenue and income growth, but weak outlooks from AMD and Qorvo weighed on sentiment.
- Super Micro Computer (SMCI) dropped over 30% after revealing EY’s resignation as its auditor, which also impacted Nvidia (NVDA) since SMCI integrates Nvidia’s GPUs into their AI-focused servers.
Microsoft Misses on Cloud Guidance
Microsoft’s Q1 revenue jumped 16% YoY to $65.6 billion, led by a 33% rise in Azure cloud services, but the company warned of slowing cloud growth this quarter. Investors are cautious about Microsoft’s expanded CapEx on AI, which, despite big partnerships like OpenAI, may take time to show returns.
Meta’s AI Investments Weigh on Shares
Meta reported strong revenue of $40.6 billion and a net profit of $15.7 billion, but its ambitious AI spending raised investor concerns. Mark Zuckerberg noted “strong momentum,” but Meta is bracing for “significant” AI infrastructure spending. The market’s focus shifts to Apple (AAPL) and Amazon (AMZN) tonight, where AI is also expected to be a central theme.
Samsung Electronics’ Profit Misses
Samsung reported a 40% decline in operating profit in its semiconductor division due to foreign exchange impacts and employee incentives. The company is prioritizing high-bandwidth memory chips for AI but faces competition from SK Hynix.
Oil Markets Remain Volatile
Oil was choppy as US crude stockpiles showed a surprise drop, indicating steady demand despite earlier concerns about Middle East supply disruptions. Brent is at $71.91, while WTI is trading at $68.39 a barrel.
Key Economic Releases to Watch Today
- Core PCE, Personal Income/Spending, Jobless Claims: 8:30 AM ET
- Chicago PMI: 9:45 AM ET
Today’s Earnings Lineup
Pre-Market: SUBER, SPTON, SNCLH, SHOP, MA, SNKLA, SMO, SSIRI, BUD, SMBLY, SEL, SICE
After Market: AAPL, AMZN, INTC, RBLX, X
Our Game Plan
We’ll be keeping an eye on AAPL calls, potentially riding WMT puts, and might take a quick move on chip stocks on this dip. Join us in chat for live updates and setups. See you there!
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