S&P 500 futures are losing ground in premarket trading as shares of Amazon and Apple are under significant pressure after disappointing quarterly reports.
Amazon reported revenue of $110.81 billion and GAAP earnings of $6.12 per share, missing analyst estimates on both earnings and revenue. The company’s performance suffered from labor shortage and higher costs. Amazon also expects that it will face extra costs in the fourth quarter of this year.
Apple met analyst estimates on earnings but missed them on revenue due to chip shortage. Demand for Apple’s products remained strong, but the market wanted to see more progress, and the stock is down by 3.5% in premarket trading.
Personal Income Declined By 1% In September
U.S. has just released Personal Income and Personal Spending reports for September. Personal Income decreased by 1% month-over-month compared to analyst consensus which called for a decline of 0.2%. Personal Spending increased by 0.6% month-over-month compared to analyst consensus of 0.5%.
Today, traders will also take a look at Michigan Consumer Sentiment report which is projected to show that Consumer Sentiment increased from 71.4 in September to 72.8 in October.
Treasury Yields Move Higher, Putting Pressure On Precious Metals
The yield of 10-year Treasuries is currently trying to settle back above 1.60% as it continues to rebound from recent lows at 1.52%. Interestingly, the yield of 2-year Treasuries is also moving higher and is trying to settle above 0.52%.
The broad move in the Treasury markets has put material pressure on precious metals. Gold slipped back below the $1800 level, so gold mining stocks will likely move lower at the beginning of today’s trading session. Meanwhile, silver is testing the support level at $23.90.
Bond markets will likely remain nervous ahead of the Fed meeting which will take place at the beginning of the next week, but it remains to be seen whether changes in yields will have a material impact on the stock market.