Stocks Futures Barely Rise, Though Techs Enjoy Big Earnings
July 31,2020 08:33 am EST
Stock futures were barely higher early Friday even after some of the biggest tech companies and market leaders- Facebook, Amazon, Alphabet and Apple — reported better-than-expected quarterly results.
Futures for Dow Jones Industrials gained 60 points, or 0.2%, early Friday, to 26,278.
Futures for the S&P 500 gathered 11.25 points, or 0.4%, at 3,260.
Futures for the NASDAQ hiked 130.75 points, or 1.2%, to 10,924.75.
Emergency unemployment benefits are set to expire Friday and Congress and the White House still seem far apart on an agreement.
Stocks linked to an economic recovery like banks and retailers were lower in pre-market trading Friday as investors asses the biggest quarterly gross domestic product contraction on record and persistently weak job growth. Bank of America and Home Depot were lower in premarket trading.
Dow-component Chevron fell more than 2% in pre-market trading after the oil giant reported an $8.3 billion loss in the second quarter as the pandemic "significantly reduced demand."
Apple shares gained 6% in pre-market trading. The company reported a blowout quarter, with overall sales expanding by 11%. Apple also announced a four-for-one stock split.
Amazon, meanwhile, traded 5.4% higher as the company saw its sales skyrocket during the coronavirus pandemic. Facebook shares rallied more than 6% in premarket trading as the social media giant posted revenue growth of 11% even amid the coronavirus pandemic slowdown. The company also issued stronger-than-expected sales guidance for the current quarter.
Google-parent Alphabet also posted better-than-expected results. The stock''s performance was muted relative to the other Big Tech names as the company''s overall revenue decline in its history. Revenues for Google Cloud were also just below analyst expectations.
Collectively the four stocks were set to add about $200 billion to their total market cap, bringing it to more than $5 trillion.
Overseas, in Japan, the Nikkei 225 tumbled 2.8% while in Hong Kong, the Hang Seng index fell 0.5%.
Oil prices grew 43 cents to $40.35 U.S. a barrel.
Gold prices popped $28.40 to $1,946.50.