Stock futures are experiencing a notable rise, led by gains in technology stocks following robust earnings reports from major players such as Apple and Amazon. Amazon is poised to reach a record high at the market’s open, thanks to accelerated growth in its cloud segment last quarter. Meanwhile, Apple has exceeded quarterly expectations and provided an optimistic forecast for the upcoming holiday quarter. Additionally, Reddit shares are surging on the back of better-than-expected earnings and a positive outlook, while Netflix stock is climbing after the streaming giant announced its first stock split in a decade.
In more detail, stock futures indicate a rebound from the previous day’s decline. After a disappointing earnings announcement from social media giant Meta, which contributed to declines in the major indexes, investors are reacting positively to the performance of tech giants. Specifically, futures linked to the Dow Jones Industrial Average are up 0.2%, and the S&P 500 is advancing by 0.8%. The tech-heavy Nasdaq 100 contracts have risen by 1.3%. Concurrently, the yield on the 10-year Treasury note has edged up to 4.11%, marking its highest level in three weeks.
In premarket trading, Amazon shares have surged over 12% following its strong third-quarter results, which reflect significant growth driven by its core e-commerce and cloud businesses. The company reported a 20% year-over-year revenue increase at Amazon Web Services, translating to $33 billion, and raised its capital expenditures forecast to $125 billion, indicating ongoing investment in infrastructure for artificial intelligence. This momentum suggests that Amazon, which has lagged behind the “Magnificent Seven” stocks this year, could be set to achieve a record high.
Apple also reported impressive fiscal results, with earnings of $1.85 a share and revenue reaching $102.47 billion, an 8% increase year-over-year. The company’s services revenue, which carries higher profit margins, hit a record $28.75 billion. CEO Tim Cook expressed optimism for the holiday season, projecting overall revenue growth to accelerate to between 10% and 12%. As a result, Apple shares are up more than 2% in early trading and are also expected to hit a new record.
In a noteworthy development, Reddit’s shares have jumped over 11% in premarket activity, buoyed by its strong earnings report and a solid forecast. With revenue increasing by 68% to reach $585 million and a net income that quintupled to $163 million, the company has exceeded Wall Street’s estimates. This positive outcome has alleviated concerns regarding potential impacts from Google’s AI-driven search features on user growth.
Meanwhile, Netflix has announced a 10-for-1 stock split, which will be the company’s first in ten years. Shareholders on record as of November 10 will receive nine additional shares for each share owned, with trading on a split-adjusted basis set to begin on November 17. After closing at $1,089, Netflix is among the most expensive stocks within the S&P 500, and its split may increase affordability for investors. Shares of Netflix have risen about 2% ahead of the market’s open.
Overall, the combination of strong earnings reports from leading tech companies and positive market movements has generated a wave of optimism in the stock market, particularly within the technology sector.
