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Dow Jones Futures Fall On Amazon, Google Earnings: Intel, Chipotle, Snap Move

Dow Jones futures sold off sharply late Thursday, with S&P 500 futures and especially Nasdaq futures tumbling, threatening to wipe out much of Thursday’s stock market rebound. Amazon.com (AMZN), Google parent Alphabet (GOOGL), Intel (INTC), Chipotle Mexican Grill (CMG) and Snapchat operator Snap (SNAP) were among the notable earnings movers late Thursday. Amazon stock, Google stock and Snap stock fell sharply late, with fellow internet giant Facebook (FB) falling in sympathy. Intel stock and Chipotle stock rose modestly.




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Dow Jones Futures Today

Dow Jones futures fell 1% vs. fair value. S&P 500 futures skidded 1.45%. Nasdaq 100 futures tumbled 2.4%. Remember that action in Dow futures, Amazon stock, Google stock and elsewhere doesn’t necessarily translate into actual trading in the next regular session.

A Dead-Cat Bounce In A Stock Market Correction?

In Thursday’s stock market trading, the major averages rebounded, with the Dow Jones rising 1.6%, the S&P 500 index 1.9% and the Nasdaq composite 3%. But all three indexes remained below their 200-day lines and only recouped part of Wednesday’s losses.

Dow futures and other overnight action suggest that much of Thursday’s gains could quickly disappear.

The Dow, S&P 500 and Nasdaq are down sharply in October, with growth stocks especially hard hit. It’s still a stock market correction. Thursday was just day one of a new rally attempt. Investors should wait until a follow-through day confirms a new uptrend.

Amazon Earnings

Amazon earnings soared 1,006% to $5.75 a share, obliterating estimates for $3.14. Net sales increased 29% to $56.6 billion, slightly below views for $57.1 billion.

Amazon sees Q4 revenue of $66.5 billion to$72.5 billion, a 10%-20% year-over-year gain. Analysts expected a 22% pop to $73.89 billion.

Amazon Web Services, the cloud-computing arm, generated $2.08 billion in operating income, 56% of Amazon’s total.

Shares crashed 7.4% late. Amazon stock rose 7.1% Thursday after settling just below its 200-day moving average on Wednesday. But the e-commerce and cloud-services giant looks to plunge back below that long-term support level at Friday’s open.

Google Earnings

Google parent Alphabet’s earnings grew 36.5% to $13.06 a share, with revenue up 21.5% to $33.74 billion. Analysts expected Google earnings of $10.42 a share on revenue of $34.04 billion. Lower ad prices hurt revenue, possibly reflecting growing competition by Amazon in online ads.

Shares slid 3.9%. Google stock closed up 4.4% after tumbling Wednesday to a five-month low.

Intel Earnings

Intel earnings per share rose 39% to $1.40 as sales grew nearly 19% to $19.16 billion.

Analysts expected $1.15 a share on sales of $18.11 billion.

For Q4, Intel sees EPS of $1.22 on revenue of $19 billion. Analysts had seen per-share profit of $1.09 and sales of $18.39 billion.

Shares rose 0.9% late, paring after-hours gains. Intel stock rose 4.8% to 44.44 Thursday after tumbling Wednesday to a 52-week closing low.

Chipotle Earnings

Chipotle earnings per share soared 48% to $2.16, beating views by 16 cents. Revenue rose nearly 9% to $1.225 billion, just below views for $1.2333 billion. Same-store sales growth of 4.4% missed forecasts for 5%.

Chipotle stock initially dipped after hours on the mixed results, then rebounded more than 8% before settling down for a 0.7% rise. Management said Chipotle’s new “For Real” marketing campaign is fueling sales. Chipotle stock had closed up 2.6% to 423.88 on Thursday.

Snap Earnings

The Snapchat operator lost 12 cents per share adjusted, beating views by 2 cents. Revenue of $298 million topped estimates for $283 million. Snap said monthly active users fell to 186 million from 188 million in Q2, its second straight sequential decline.

Snap sees Q4 revenue at $355 million to $380 million. The $367.5 million midpoint of $367.5 million is below views for $371 million.

Snap stock fell 10.4% late, which would be near a record low. Shares had closed up 6.1% to 6.99. But the social network’s shares have struggled almost immediately after their March 2017 debut.

Facebook’s photo- and video-sharing app, Instagram, has copied many popular Snapchat features. That, along with a disastrous Snapchat redesign, has left the company lagging even with its core teen audience.

Even though Snap’s business pain is in large part Instagram’s gain, Facebook stock fell 2.3% in late trade.

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