9:04 am: Chevron CEO says oil demand has bottomed
Chevron CEO Michael Wirth said that the drop-off in demand wrought by the coronavirus pandemic has likely reached a bottom. “This quarter looks like in our industry we’re seeing a bottom … first quarter we were on a bit of a downward trajectory through the quarter, certainly accelerating as we went through the month of March. I think in April and May we’re finding a bottom in demand,” he said on CNBC’s “Squawk Box.” The comments came after the company reported first quarter earnings results. Chevron reported EPS of $1.93, which included $660 million in one-time favorable items, and $31.5 billion in revenue, helped by downstream margins and increased production in the Permian. The company also announced additional cuts to its 2020 capital spending plan. In the same quarter a year earlier the oil giant earned $1.39 per share on $35.20 billion in revenue. Looking ahead, Wirth said that it’s going to be a “very, very tough quarter” despite a potential rebound in demand, while reiterating that the company is committed to maintaining its dividend. – Stevens
8:53 am: ’Best six months’ finish in the red, which could be a bearish signal
April’s rally wasn’t enough to put the November-April six month stretch in the green, which could signal a choppy next six months, according to a note from Jeffrey Hirsch and Christopher Mistal from the Stock Trader’s Almanac.The Dow was down 10% over the last six months, which is often referred to as the “best six months” as the flipside to the “sell in May” adage. Historically, that means that stocks are likely to lose ground in the next six months as well, the note said. “When the market is down during the ‘Best Six Months’ it’s an indication that there are more powerful forces than seasonality at work and when the bullish season is over those forces may really have their say,” the note said. — Pound
8:45 am: Reopening stocks tick lower
Stocks linked to the reopening of the economy — retailers and airlines— fell in premarket trading on Friday. Reopening stocks were leading the charge in April on hopes of an earlier than expected lifting of stay-at-home orders and a rebound in consumer behavior. Shares of Tapestry fell 3.5% in premarket trading. TJX Companies and Macy’s dropped more than 3% and Nordstrom fell nearly 6%. Kohl’s dropped 5%. American Airlines ticked 5% lower and United and Delta Air Lines fell about 4.5% each. Southwest Airlines fell nearly 3%. —Fitzgerald
8:25 am: Wall Street analysts react to Apple earnings
The tech giant reported mixed earnings on Thursday after the bell but analysts say Apple is well-positioned as the 5G cycle begins to ramps up. “We remain positive on the long-term eco-system and product development opportunities, coupled with a strong balance sheet and brand position,” Baird said. “With increased confidence in the 5G iPhone launch and stretched iPhone replacement cycles, Apple remains top pick,” Morgan Stanley added. — Bloom
8:23 am: Apple stock dips after company withholds guidance
Shares of Apple were down about 2.6% in premarket trading after the company declined to announce guidance for its fiscal third quarter. The tech company did report better than expected earnings and revenues for its second quarter, but iPhone revenue was down 7% compared with the same quarter last year. Apple’s stock jumped 15.3% in April. — Pound
8:16 am: Amazon shares fall after profit warning
Shares of Amazon fell 4.6% in premarket trading after the technology giant warned that it planned to spend all of its second quarter profit on dealing with the coronavirus pandemic. “If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small,” Amazon CEO Jeff Bezos said in a press release announcing its first quarter results. The company did beat Wall Street estimates for revenue for its first quarter but missed on profits. Amazon rallied nearly 27% in April. — Pound
8:14 am: April’s rally by the numbers
April was the biggest monthly gain for stocks in over 30 years, largely driven by hopes of reopening the economy sooner-than-expected from the coronavirus shutdown.
It was the third-biggest monthly gain for the S&P 500 since World War II. The Dow had its fourth-largest post-war monthly rally and its best month in 33 years. The S&P 500 rose 12.7% in April and the Dow gained 11.%. The Nasdaq Composite closed 15.5% higher for April, logging in its biggest one-month gain since June 2000. — Fitzgerald
8:00 am: Stock futures fall, Dow set to drop 400 points
U.S. equity futures fell on Friday and pointed to sharp losses at the open, dragged down by technology earnings. Dow Jones Industrial Average futures fell about 450 points or about 2%. S&P 500 futures fell 2%. Nasdaq 100 futures were down 2.6%.
Dragging down the futures was e-commerce giant Amazon, which fell 5% in premarket trading and Apple, which fell nearly 3%. Both technology stocks reported quarterly earnings that did not satisfy investors. Both Apple and Amazon are among the companies that led the S&P 500′s comeback from the late-March lows and were two of the best performers in April.
On Thursday, Wall Street finished out its biggest month in over 30 years, with the S&P 500 gaining 12.7% while the Dow advanced 11.1%. Stocks, however, fell on Thursday as investors digested another week of jobless claims. — Fitzgerald
—with reporting from CNBC’s Michael Bloom.
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