Apple, Amazon earnings misses could rattle market
Apple posts a rare miss on earnings but beats analysts' earnings expectations. Amazon disappoints on both counts, which could sour the market's mood.
â€śOf the two names tomorrow, Iâ€™d bet AmazonÂ gets more beat up than AppleÂ does,â€ť said Art Hogan ofÂ Lazard Capital Partners. â€śShould it? Yes. You have a miss on earnings and revenues and guidance is slightly lowered. Apple, on the other hand, beat on the revenues and I think the guidance is reasonable.â€ť
Â Hogan said the Apple miss may present a buying opportunity. â€śThe stalwarts of the market since the market ran up in June wereÂ GoogleÂ and Apple, and both of them were taken to the woodshed already,â€ť he said. Apple stock was down nearly 9 percent this month, ahead of its earnings announcement.
Appleâ€™s stock has a big impact on the S&P 500. Its stock bobbed in after-hours trading briefly down to $585, its first move below $600 since July. It then rebounded, trading in the low 600s. The S&P futures were initially lower but turned slightly higher. Amazon shares slumped more than 1 percent after the bell, after a 2.4 percent decline during the regular trading day Thursday.
Â Amazon reported a loss of $274 million, or 60 cents per share, compared with a profit of $63 million or 14 cents per share a year earlier. Excluding special items, Amazon reported a loss of 23 cents a share. Amazon spent heavily to expand existing operations and develop new business, but it also forecast revenues of $20.25 billion to $20.75 billion, below the $22.79 billion analysts were expecting for the fourth quarter.
Â Apple reported earnings of $8.67, below the $8.75 per share expected by analysts. Its revenues however were better than expected at $35.97 billion.
Â Fridayâ€™s markets will also be impacted byÂ third-quarter GDP, to be reported at 8:30 a.m. ET. Consumer sentiment is reported at 9:55 a.m.