5 things to know before the stock market opens on Friday

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Here are the most important news, trends and analysis that investors need to start their trading day:

1. Technology pressures Wall Street before commercialization; data shows that inflation remains high

Traders on the floor of the NYSE, April 28, 2022.

Source: NYSE

2. Amazon falls on poor forecasts and the slowest growth since the dot-com collapse

Andy Jassy, ​​CEO of Amazon and then CEO of Amazon Web Services, speaks during the WSJD Live conference in Laguna Beach, California on October 25, 2016.

Mike Blake | Reuters

Amazon fell more than 10% in pre-market, after its Thursday evening announcement of weaker-than-expected first-quarter profits and lower guidance. Revenue in the quarter rose 7% year over year to $116.4 billion, essentially in line with expectations. It was the lowest sales increase of any quarter since the dot-com meltdown in 2001 and the second straight quarter of single-digit percentage growth. Amazon Web Services’ cloud unit was again strong. But not strong enough to carry the e-commerce side of the business, which has seen $6 billion in additional costs due to rising inflation, lower worker productivity and the ability to excess execution.

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3. Apple drops out after warning of massive hit due to supply constraints

Apple Inc. CEO Tim Cook speaks during the virtual Peek Performance event in New York, U.S. on Tuesday, March 8, 2022.

Gaby Jones | Bloomberg | Getty Images

Apple fell 1.5% in premarket Friday morning after warning that Covid-related supply constraints could hurt sales by $4 billion to $8 billion in its fiscal third quarter. The guidance overshadowed strong fiscal second-quarter results, including earnings, revenue and gross margins. While analysts were expecting a bit more from the services segment, it nevertheless recorded record revenues. Product sales hit a record high for the March quarter. Investors also secured a 5% dividend increase and $90 billion buyout approval. At the end of the quarter, Apple had net cash of $73 billion.

4. Musk sells roughly $4 billion worth of Tesla stock as he prepares to buy Twitter

Elon Musk sold about $4 billion worth of Tesla stock in the days after his $44 billion bid to take Twitter private, according to documents filed with the Securities and Exchange Commission. The bulk of the CEO’s sales were made on Tuesday, according to filings. Tesla shares fell 12% that day but edged up Wednesday by less than 1 percentage point.

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As the filings went public late Thursday, Musk wrote on Twitter, “No further TSLA sales are anticipated after today.” Tesla stock rose more than 1.5% in Friday’s premarket. Twitter shares soared nearly 1% to more than $49 apiece, below Musk’s cash bid of $54.20 per share.

5. Chevron and Exxon fall despite posting strong earnings on high energy prices

Gas prices are displayed at a Chevron station on June 14, 2021 in Los Angeles, California.

mario tama | Getty Images

Shares of Chevron fell 1% in Friday’s premarket after the oil giant said profits more than quadrupled in the first quarter due to higher oil and gasoline prices. Chevron’s revenue rose nearly 70% to $54.37 billion. West Texas Intermediate crude futures hit $130.50 in early March, a price last seen in 2008 as Russia’s invasion of Ukraine sparked supply fears. Prices have since declined, but are still above $100, which is boosting trading by energy companies.

Exxon Mobil shares fell 1% premarket after the company announced on Friday that it had taken a $3.4 billion after-tax charge in the first quarter related to its Sakhalin-1 operation in Russia. Profit doubled to $5.5 billion in the quarter. However, profit was down from $8.87 billion in the fourth quarter. Revenue rose more than 50% to $90.5 billion, although that was below expectations.

—TNZT Tanaya Macheel, Jeff Cox, Annie Palmier, Jeff Marks, Kif Leswing, Zev Fima, Lora Kolodny, Christine Wang and pippa stevens contributed to this report.

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