Equities: Tech earnings weigh on US futures - Deutsche Bank
Deutsche Bank strategists highlight pressure on US equity futures as disappointing results from Alphabet and Samsung overshadow Microsoft's strong cloud performance. They note broader weakness across Asian markets, while European equities struggle for direction amid rising energy prices.
Deutsche Bank strategists warn that disappointing tech earnings are weighing on US equity futures. Alphabet's shares dropped nearly 10% in after-hours trading as its Q3 sales fell short of analyst expectations, driven by disappointing Google Services revenue of $96.3bn compared to the estimated $98.4bn. Similarly, Samsung Electronics is trading about 5% lower in Asia after reporting lower-than-expected operating profit in its chip unit and delaying its new shareholder return plan.
Despite Microsoft's cloud revenue beating estimates (+48% year-over-year), the overall tech sentiment remains gloomy. Nasdaq futures are down 1.20%, while S&P 500 futures are down 0.35%. The broader Asian markets are struggling, with KOSPI down 1.20%, CSI 300 down 1.20%, and Shanghai Composite down 0.93%. European equities, however, are struggling to gain traction due to rising energy prices.
The upcoming earnings from Amazon and Intel are expected to keep tech earnings in focus. Meanwhile, rising energy prices and upcoming macro data such as the Q3 GDP and PCE Price Index will also play a role in shaping market sentiment.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
