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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. Upcoming earnings from Amazon and Intel remain in focus.

Tech earnings disappoint as Nasdaq futures retreat

"Alphabet’s shares sank by almost -10% in after-hours trading, after its Q3 sales fell just shy of analyst expectations due to disappointing Google Services revenue ($96.3bn vs $98.4bn est.). With ad revenue growing at its slowest pace in five quarters, the results raised questions about whether the payoffs will come fast enough to justify the company’s soaring capex spend."

"Meanwhile, Samsung Electronics is trading about -5% lower in Asia this morning after the operating profit in its chip unit came in below analysts’ optimistic expectations and the company delayed its new shareholder return plan."

"Microsoft did gain about +3% in extended trading after delivering a beat in cloud computing revenue (+48% yoy vs +44% est.) but this was insufficient to brighten the overall gloomy tech mood this morning. Nasdaq futures are trading -1.20% lower, with those on the S&P 500 down -0.35%."

"A more downbeat mood is also visible in most Asian markets this morning, with KOSPI (-1.20%) down after Samsung’s earnings, though it has recovered from about -3% down earlier on. Elsewhere, the CSI 300 (-1.20%) and the Shanghai Composite (-0.93%) are also trading lower."

"In contrast, the Nikkei (+0.66%) and the S&P/ASX 200 (+0.45%) are bucking the broader regional weakness, while the Hang Seng (+0.06%) has fluctuated between gains and losses. Tech earnings will remain in focus today with Amazon and Intel reporting."

"Rising energy prices also meant European equities struggled to gain traction. The Stoxx 600 (+0.07%), FTSE 100 (+0.07%), and CAC 40 (-0.00%) closed relatively unchanged, while Spain’s IBEX (-1.45%) registered a steeper fall."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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