US equity futures were limping into the cash market open with significant losses as disappointing tech results and the pervading fear that higher rates were slowing economic growth crushed investor confidence.
Fresh off Thursday's rousing comeback, the Dow Jones Industrial Average was set to open at least 180 points lower. Led by losses in Amazon ( AMZN ) and Alphabet (GOOG, GOOGL) the Nasdaq was hemorrhaging in early trade, indicated to open at its lowest level since April. Both, however, were off their worst levels thanks to better-than-expected Q3 GDP.
Data released at 8:30am ET provided a bright spot in an otherwise negative setting as Q3 GDP came in at a 3.5% annualized rate versus 3.3% estimates led by robust consumer spending. The price index was also bullish, increasing by a less-than-expected 1.7%.
Amid the deluge of corporate earnings after the close Thursday including Chipotle Mexican Grill ( CMG ), Intel ( INTC ) and Mattel ( MAT ), Alphabet and Amazon both drew the most attention from Wall Street, after the tech giants missed revenue expectations. Additionally, Amazon issued sales guidance that was below street estimates, warning that Q4 sales will be adversely impacted by foreign exchange rates.
The double whammy sent shockwaves through global equity markets, already shell-shocked from this week's wild swings, and by expectations for the Federal Reserve to continue hiking rates despite market volatility. Heavy selling pressure in Europe permeated US markets with the technology sector again taking the brunt of investors' aversion to risk.
Up at 10 am ET is the final read on the October University of Michigan consumer sentiment index, expected to remain unchanged from the 99.0 flash.
-Dow Jones Industrial was down 0.74%
-S&P 500 futures was down 0.93%
-Nasdaq 100 futures was down 1.96%
Nikkei was down 0.40%
Hang Seng was down 1.11%
Shanghai Composite was down 0.19%
FTSE-100 was down 0.99%
DAX-30 was down 1.52%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: Lower
(-) Chip stocks: Lower
(-) Software stocks: Lower
(-) Hardware stocks: Lower
(-) Internet stocks: Lower
(-) Oil stocks: Lower
(-) Biotech stocks: Lower
(-) Drug stocks: Lower
(-) Financial stocks: Lower
(-) Retail stocks: Lower
(-) Industrial stocks: Lower
(-) Airlines: Lower
(-) Autos: Lower
(+) MLNX (+13.03%) Exploring a sale after receiving takeover interests
(+) LOGM (+9.36%) Beat Q3 EPS estimates
(+) PSX (+2.55%) Q3 results were better-than-expected
(-) SGYP (-67.86%) Will need to pay $38 mln to $51 mln in penalties if Trulance sales don't meet CRG minimums
(-) FLEX (-23.01%) Reported mixed Q2 results, issued soft FY19 guidance
(-) ELLI (-21.57%) Q3 revenue missed expectations, issued weak Q4 guidance