Third Bridge TMT global sector lead Scott Kessler says Apple and Amazon earnings fell below estimates due to supply chain issues.
U.S. stock futures were lower Friday morning as the supply chain crunch weighed on results from Apple and Amazon.
Dow Jones Industrial Average futures slipped 50 points, or 0.14%, while S&P 500 futures and Nasdaq 100 futures declined 0.49% and 0.85%, respectively. Both the S&P and Nasdaq closed at record highs on Thursday.
Apple Inc. reported sales that fell short of estimates as supply chain bottlenecks cost the company an estimated $6 billion in quarterly revenue. Still, sales were up 29% year over year with iPhone revenue hitting a record $38.87 billion.
Amazon Inc. missed on both the top and bottom lines and delivered a disappointing outlook for the critical holiday due to concerns over supply chain challenges. CEO Andy Jassy said costs for its consumer business were expected to in the current quarter climb by “several billion dollars” due to increased labor, freight and input costs.
Elsewhere in tech, Western Digital Corp. issued disappointing profit and sales outlooks as the chipmaker struggles to navigate supply chain bottlenecks.
Oil giant Chevron Corp. reported its highest profit in eight years and record free cash flow that was boosted by surging oil and gas prices and a lower operating costs. Both earnings and revenue exceeded expectations.
Rival ExxonMobil Corp. reported its highest quarterly profit in four years, but missed on revenue. The company announced plans to buy back up to $10 billion of stock over the next 12 to 24 months.
Meanwhile, Starbucks Corp. revenue fell short of estimates as a resurgence of COVID-19 cases in China shut stores in major cities, resulting in a 7% decline in comparable sales in the country.
Overseas trading struck a slightly negative tone.
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European bourses were weaker across the board with Britain’s FTSE 100 losing 0.22%, France’s CAC 40 declining 0.37% and Germany’s DAX 30 sliding 0.81%.
In Asia, Hong Kong’s Hang Seng index slumped 0.7% while Japan’s Nikkei 225 and China’s Shanghai Composite index rallied 0.25% and 0.82%, respectively.
