U.S. Futures Rise as Amazon, Apple Shares Surge Before Market Open

U.S. stock markets are set to open higher Friday, set to end the week on a positive note on the back of strong earnings from tech giants Amazon and Apple.

By 6:46 AM ET (1046 GMT), Dow Jones futures were up 109 points or 0.34%, S&P 500 futures rose 0.77%, and Nasdaq 100 futures increased by 1.17%.

The main indices are on course for a second positive week in a row, with generally strong corporate earnings holding sway even after the Federal Reserve hiked interest rates by a further 75 basis points and GDP contracted for the second quarter in a row.

The blue-chip Dow Jones Industrial Average is 2% higher so far this week, while the broad-based S&P 500, and the Nasdaq Composite have both gained 2.8%.

Highlighting the session today will be earnings from the Big Tech sector, with both Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) surpassing expectations with their quarterly results released after the close on Thursday.

Shares in Amazon zoomed higher by more than 12% in premarket trade, thanks to a revised outlook from the company that offset slower net sales growth compared to the same period last year. Amazon now expects a jump in third quarter revenue, citing bigger fees from Prime loyalty subscriptions and resilient consumer demand.

Apple also forecasted strong demand for its flagship iPhone product despite consumers tightening other spending as economic growth slows. The firm also declined to give specific revenue guidance due to economic uncertainty but said annual sales should rise faster in the current quarter than the 2% growth it posted in the just-ended last three months.

Shares in Apple edged into the green by 2.28% in premarket trading.

A fresh batch of European data also helped ease some risk sentiment. The 19-nation Eurozone grew surprisingly strongly in the second quarter, defying expectations of a slowdown and the previous day’s weak U.S. release. Healthy performances in Spain, France, and Italy helped offset stalling growth in Europe's biggest economy, Germany.

However, inflation - which has weighed heavily on business and consumer activity in the region - came in at a new record high of 8.9% compared to the prior year, up from 8.6% in June. Analysts had been anticipating the number to stay at that prior level.

Concerns still remain that the Eurozone will tip into a recession either late this year or early next year despite the strong second quarter.

Meanwhile, crude oil prices moved up on Friday, helped by supply concerns ahead of next week’s meeting of a group of top producers even amid fears of a global recession.

By 7:08 AM EST (1108 GMT), U.S. crude futures were up 2.33% at $98.67 a barrel, while Brent crude was up 2.21% at $104.08 a barrel.

Additionally, gold futures popped slightly to $1,759.40/oz, while the EUR/USD was trading at $1.0225.

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Dow Futures Up 160 Pts; Jobless Claims in Focus

U.S. stocks are seen posting modest gains later Thursday, with investors focusing their attention on reports on initial jobless claims and private sector hiring ahead of Friday’s government nonfarm payrolls report for May.

At 6:50 AM ET (1050 GMT), the Dow futures contract was up 162 points, or 0.5%, S&P 500 futures gained 0.4% while Nasdaq 100 futures rose 81 points, or 0.6%.

The gains came after Wall Street's three major indexes closed lower on Wednesday amid concerns that the Federal Reserve will stick to its aggressive rate hike cycle aimed at curbing soaring inflation.

The Dow ended down 176.89 points, or 0.5%, on Wednesday. The S&P 500 was off around 0.8% and the Nasdaq Composite slid 0.7%.

The Labor Department is to publish its weekly report on initial jobless claims at 8:30 AM ET. ADP will release data on private sector hiring at 8:15 AM ET.

The employment data is coming ahead of Friday’s nonfarm payrolls report for May with economists expecting the economy to have added 325,000 jobs last month. While still solid, it would represent the slowest jobs growth in around a year with the labor market transitioning to more moderate growth as the effects of the pandemic ebb.

Data on Wednesday showed that U.S. job openings fell in April, but remained at high levels, suggesting that wages would continue to rise, contributing to already high inflation.

Investors are closely watching economic data for clues as to what it might mean for interest rates and Friday’s employment report could set the tone for markets this month after a tumultuous month of May.

In corporate news, shares in online pet product retailer Chewy (NYSE:CHWY) surged around 17% ahead of the open after its quarterly earnings results late Wednesday came in ahead of expectations.

Shares in Hewlett Packard Enterprise (NYSE:HPE) were lower after it reported slight misses in both earnings and revenue, after the bell on Wednesday.

Meta Platforms (NASDAQ:FB) stock was also in focus after Chief Operating Officer Sheryl Sandberg announced in a Facebook post late Wednesday that she is leaving the company after 14 years.

The announcement initially sent Meta's shares down 4%, but the stock erased the losses in after-hours trade.

Earnings from big tech names Crowdstrike Holdings (NASDAQ:CRWD) and Asana (NYSE:ASAN) are due after the close, along with results from retailers Lululemon Athletica (NASDAQ:LULU), Designer Brands (NYSE:DBI) and RH (NYSE:RH).

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Nasdaq futures jump 2% after Meta earnings beat

Nasdaq 100 futures jumped more than 2% on Thursday as Meta Platforms shares soared after a stronger-than-expected profit, taking some pressure off growth and technology stocks that have been battered recently.

The Facebook-parent rose 17.7% in early New York trading after the social-networking site also eked out user growth.

Other megcap stocks such as Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA) Inc rose between 1.7% and 3.4%.

The Nasdaq Composite index is on course to post losses of over 10% in April, as investors dumped high-growth stocks on fears that rising interest rates will threaten future earnings and after Netflix Inc (NASDAQ:NFLX) posted a shocking subscriber loss.

Apple, the world's most valuable company, and e-commerce giant Amazon are set to report earnings after markets close on Thursday.

Qualcomm (NASDAQ:QCOM) Inc jumped 8.4% after the chipmaker forecast third-quarter revenue above analyst expectations.

At 05:05 a.m. ET, Dow e-minis were up 390 points, or 1.17%, S&P 500 e-minis were up 76.75 points, or 1.84%, and Nasdaq 100 e-minis were up 328.25 points, or 2.52%.

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