U.S. Futures Lower, Asia Mixed After BIG Tech Misses, Are Markets JUST to High

29/10/2021 U.S. futures are lower and Asian stocks are mixed after disappointing Amazon.com Inc. and Apple Inc. earnings and as traders weighed bond-market gyrations amid concerns over inflation and monetary tightening.
Chinese shares were modestly higher, while Japan fluctuated. Nasdaq 100 contracts underperformed S&P 500 futures. Apple and Amazon fell in extended trading, signaling a possible drop of more than $200 billion in combined market value when the U.S. reopens. That dented upbeat views on company performance that earlier took Wall Street to a record close.

Locally, the JSE closed higher despite global concerns of elevated inflation and the prospect of sooner than expected rate hikes. The JSE All Share closed up 0.42% while the Rand weakened to R 15.15/ $, we are seeing the ZAR drifting to two month lows as the local currency tests R 15.20/$ this morning. We can ecpect a lower open this morning as US futures are lower, Tencent is down 0.90% and the IG Top 40 Index is down 335 points. South Africa has picked 25 wind and solar power projects to be built by private developers, part of a plan to reduce the nation’s reliance on coal for electricity and end rolling blackouts that are curbing economic growth.

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European stocks are set to open lower Friday as traders digest a raft of U.S. and domestic corporate earnings. European traders will react to a busy morning of earnings, with BNP Paribas, Natwest, Glencore, BBVA and Bank of Ireland just some of those reporting before the bell. New inflation data for the Euro zone will be released at 11 a.m. local time. This comes after the European Central Bank decided yesterday to keep interest rates and its monetary policy stance unchanged, despite ongoing inflationary pressures. President Christine Lagarde tried to play down the chances of a rate hike for 2022, hinting that market players might be getting ahead of themselves with their predictions.
Overnight in the US the S&P 500 and the tech-heavy Nasdaq closed at record highs as investors shrugged off disappointing economic data.The U.S. economy grew at a 2% annualized pace in the third quarter, its slowest increase since the end of the 2020 recession and missing expectations of 2.8% growth. The stock market has been raking in records amid solid earnings. About half of the S&P 500 have reported quarterly results and more than 80% of them beat earnings estimates from Wall Street analysts. S&P 500 companies are expected to grow profit by 38.6% year over year. All three major averages are on track to post a winning week, their fourth positive week in a row. Month to date, the S&P 500 is up 6.7%, on pace for its best monthly performance since November 2020. The Dow has gained 5.6% in October, while the Nasdaq has rallied 6.9%. However, futures are lower this morning as major Tech names dropped in after-hours trading after disappointing earnings reports. Amazon shares dropped 4% in extended trading after the e-commerce giant badly missed earnings and revenue expectations for the third quarter. The company also issued disappointing guidance for the critical holiday period. ‘’Maybe Jeff should spend more time at the office’’
Asian markets are mixed as investors monitor stocks of Apple suppliers after the tech giant’s revenue miss. Mainland Chinese stocks were higher by the afternoon as the Shanghai composite advanced 0.16% and the Shenzhen component gained 0.701%. Hong Kong’s Hang Seng index shed 0.45%, Tencent – 1.23 %. Australian stocks also fell as the S&P/ASX 200 dropped 0.71%. Australia’s retail sales rose 1.3% month-on-month in September on a seasonally adjusted basis, according to data released Friday by the country’s Bureau of Statistics. That was higher than forecasts for a 0.2% gain in retail sales, according to Reuters. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4%.