The stock initially jumped more than 10% after decent
bottom-line earnings were released. But it reversed all of that
after Chief Financial Officer Brian Olsavsky signaled its long
lofty cloud computing growth would slow further as its business
customers braced for turbulence.
Amazon was down about 2.5% ahead of Friday's open.
Intel attempted to keep tech appetite alive, however, and
its shares rose 4% in out-of-hours trading after it flagged a
second-half improvement in depressed gross margins.
Banking remained jittery. U.S. officials are coordinating
urgent talks to rescue First Republic Bank as
private-sector efforts led by the bank's advisers have yet to
reach a deal, according to Reuters sources.
With much of Europe and Asia closed on Monday for the May
Day bank holiday, Asia bourses advanced in Wall St's slipstream
but Europe retreated sharply on some jarring corporate updates.
The biggest European laggards in percentage terms were UK
lender Natwest , which fell nearly 6% after reporting
large deposit outflows in the first quarter, and Spain's Banco
Sabadell , which dropped 5.7% for similar reasons.
In deals, Deutsche Bank said on Friday it had
agreed to buy London-based stockbroker Numis for about
410 million pounds ($511 million) - an all-cash offer
representing a premium of 72% to Numis stock's Thursday close.
Events to watch out for on Friday:
* U.S. March personal income and consumption and core PCE
reading, Dallas Fed's March "Trimmed MeanPCE", April Chicago
business survey and University of Michigan sentiment surveys
* U.S. corp earnings: Exxon Mobil, Chevron, Colgate-Palmolive,
Newell Brands, Aon, Charter Communications, LyondellBasell
* Eurogroup finance ministers meet in Stockholm, with European
Central Bank President Christine Lagarde, ECB board member Fabio
Panetta and ECB bank supervisor Andrea Enria attending
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Amazon's cloud division growth hits record low Tokyo core-core inflation reaches a four-decade high Big Tech share of S&P500 market cap Mega Tech mojo returns ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(By Mike Dolan; Editing by Toby Chopra;
mike.dolan@thomsonreuters.com. Twitter: @reutersMikeD)
A look at the day ahead in U.S. and global markets from Mike
Dolan
After mega tech earnings inspired the best day for Wall St
stocks in almost 4 months, online retail giant Amazon cooled the frenzy somewhat on Friday - even as chipmaker Intel attempted to pick up the torch.
But the dramatic re-acceleration of Big Tech stocks this
week - where the NYFANG+TM index of the top 10 Big
Tech stocks is now up 37% so far this year - is competing with
multiple macro narratives that are increasingly hard to read.
Japan's yen fell to its lowest in six weeks and
Tokyo's Nikkei 225 jumped 1.4% after the Bank of Japan
faced down persistent speculation of a sudden tightening of its
ultra-loose monetary stance, with new Governor Kazuo Ueda opting
instead for a broad review on how to phase out the policy.
Keeping BOJ bond-buying alive for the time being despite
another rise in Japanese inflation, the news followed rearview
mirror readouts from the United States and Europe on how gross
domestic product unfolded in the first quarter.
While U.S. GDP growth slowed more than forecast to an
annualised 1.1%, that was mainly due to a big rundown in
inventories untypical of an economy fearful of recession and it
masked an acceleration in consumer spending during the quarter.
Europe was even harder to read - a disappointing Q1 flatline
in Germany but forecast-beating brisk expansions in Italy and
Spain and a mixed bag of April inflation soundings.
The net result of the blizzard of incoming economic and
earnings news, a stock market jump and the U.S. debt ceiling
standoff has seen a sharp back-up in bond yields. Two-year U.S.
Treasury yields are back above 4%, even though they're off
Thursday's highs ahead of the U.S. market open today and next
week's Federal Reserve policy decision.
Helped by the yen swoon, the dollar index is higher.
With the Fed meeting in view, the release of March PCE price
inflation data later on Friday tops the diary. Big Oil tops the
earnings calendar.
Wall St stock futures fell back 0.4% after a wild ride in
Amazon.com shares overnight.
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