Here are the most important news, trends and analysis that investors need to start their trading day:
- Stocks to drop, Big Tech and Big Oil earnings in focus
- Amazon's results dazzle as Twitter's business stumbles
- EU says Apple's App Store breaks competition rules
- Chevron earnings decline; Exxon swings to profit
- Disneyland to reopen after unprecedented 13-month closure
1. Stocks to drop, Big Tech and Big Oil earnings in focus
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U.S. stock futures dropped Friday despite Amazon shares rising roughly 2% in the premarket a day after the e-commerce and cloud giant reported blowout quarterly results. One hour before the opening bell, the government said March personal income rose 21%, boosted by the latest round of Covid stimulus checks. Income was basically in-line with estimates.
The S&P 500 rose 0.7% on Thursday to close at a record. The Dow Jones Industrial Average saw similar gains but remained fractionally below its record close of earlier this month. The Nasdaq lagged with a 0.2% advance and also finished shy of Monday's record close. With one day left in April, the Nasdaq and S&P 500 were up more than 6% for the month. The Dow's monthly gain was a little more than half that.
2. Amazon's results dazzle as Twitter's business stumbles
Amazon late Thursday reported record profit for the fourth straight quarter, with earnings of $15.79 per share, swamping estimates. Revenue of $108.52 billion for the first quarter also beat forecasts, with the company showing strength in all its business lines. Amazon also said it does not expect the Covid-induced boom in online shopping to fade once the pandemic recedes.
Twitter late Thursday warned of rising expenses and a possible slowdown in user growth, sending shares almost 14% lower in premarket trading. The social media network, however, beat estimates with adjusted per-share earnings of 16 cents in the first quarter. Revenue of $1.04 billion and monetizable daily active users of 199 million basically matched analyst forecasts.
3. EU says Apple's App Store breaks competition rules
Apple shares dropped 1% in premarket trading after the European Commission said Friday the U.S. tech giant "abused its dominant position" in the distribution of music streaming apps through its App Store. The European Commission, the EU's executive arm, opened an antitrust investigation into the App Store last year, after the music streaming platform Spotify complained in 2019 about Apple's license agreements. In response, Apple said the EU's case was the "opposite of fair competition."
4. Chevron earnings decline; Exxon swings to profit
Dow stock Chevron fell about 2% in Friday's premarket, shortly after the U.S. oil major reported a first-quarter adjusted per share earnings decline of over 30% to 90 cents. The drop matched estimates, but its revenue of $32.03 billion beat expectations. Chevron's earnings sank on winter storm production losses, weaker margins and the absence of asset and tax items that benefited year-earlier profit.
Energy rival Exxon on Friday posted its first profit, $2.7 billion, in five quarters, as higher oil and gas prices offset costs from a deep freeze in February. Adjusted per share earnings of 65 cents in the first quarter beat estimates and the year-earlier period of 53 cents. Revenue of $59.15 billion also exceeded forecasts. Shares were lost 1% in the premarket.
5. Disneyland to reopen after unprecedented 13-month closure
Disneyland in California reopens to visitors Friday after an unprecedented 13-month closure in what tourism officials hope is a sign of the state's rebound from the pandemic. For now, the park is allowing only in-state visitors and operating at limited capacity. Comcast-owned Universal Studios Hollywood reopened two weeks ago. In Florida, a state with fewer virus restrictions, Universal Orlando and Disney World reopened with limited capacity in June and July.
— Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC. Reuters and The Associated Press contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC's coronavirus coverage.