Stock market news live updates: October 28, 2022

U.S. stock futures lagged on Friday morning as a big profit loss from Amazon pushed already battered tech stocks lower to end a tough week of third-quarter financials.

Futures on the tech-heavy Nasdaq Composite (^IXIC) slipped 1% ahead of the open, leading the way lower for major moving averages. Futures linked to the S&P 500 (^GSPC) were down 0.6%, while those linked to the Dow Jones Industrial Average (^DJI) were down just 0.1%. The moves came as Treasury yields surged back above 4%.

Amazon (AMZN) shares plunged around 13% premarket after the e-commerce giant released fourth-quarter sales guidance that missed Wall Street estimates and delivered disappointing Q3 results. The flub marks the second straight quarter in which weak financials from the company have led to double-digit percentage declines in the stock price.

Meanwhile, Apple (AAPL) provided “a gloomy light on an otherwise dark earnings season,” outperforming its big-tech peers as they grappled with macroeconomic hurdles posed by inflation, rising interest rates and currency headwinds. The company reported record earnings but missed analysts’ forecasts in key categories like iPhone and services. Shares are up about 0.6% in early trade.

Elsewhere in the technology spotlight, Elon Musk has taken ownership of Twitter (TWTR) after completing a drawn-out bid to buy the social media platform late Thursday. The Tesla CEO fired top executives after completing his $44 billion acquisition of the company and announced plans to reverse lifetime bans on the site. Shares were little changed.

The Twitter logo and a photo of Elon Musk are viewed through a magnifying glass in this illustration taken on October 27, 2022.  REUTERS/Dado Ruvic/Illustration

The Twitter logo and a photo of Elon Musk are viewed through a magnifying glass in this illustration taken on October 27, 2022. REUTERS/Dado Ruvic/Illustration

A busy start to Friday for investors was also marked by other reports from energy giants Exxon Mobil (XOM) and Chevron (CVX), both of which reported earnings and earnings that beat Wall Street estimates — and each name’s shares by more than up 2%. .

Liz Young, SoFi’s head of investment strategy, said in a note that she expects more downgrades and other notable failures this quarter and next, likely to continue to challenge the market. However, Young noted that on the bright side, this means investors can tick the “profits are taken” box.

“As we move through this process, the next thing we’re likely to see is the economy slide a little more dramatically than we’ve seen so far,” Young said. “There are already several classic warning signs of a recession, and the risks that lie ahead raise the likelihood of an actual recession.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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