U.S. stock markets were mostly lower at the open on Friday, as disappointing results from the three market giants raised concerns about companies' ability to sustain rising costs and solve supply chain problems.
By 9:40 AM ET (1340 GMT), the Dow Jones Industrial Average was up 20 points, or 0.1%, while the S&P 500 was down 0.3% and the NASDAQ composite was down 86 points, or 0.6%. .
In early trades, Amazon (NASDAQ:AMZN) stock fell 4.5% and Apple (NASDAQ:AAPL) stock fell 3.7%, as investors sold off the numbers ahead of expectations. announced on Thursday evening.
Apple has warned that supply chain issues that led to a drop in sales in the third quarter are likely to worsen in the current quarter, its most important quarter of the year.
Amazon, for its part, is struggling after it warned that higher costs, especially in terms of freight and labor costs, would hit operating profit next quarter.
Shares of Starbucks also fell 7.0% after warning that it expected in-store sales to plummet in the new financial year.
"The shortage of workers at a time of high demand is causing companies to pay higher wages to employees, putting more pressure on the Fed to speed up the process," analysts at ING said in a note. normalize" monetary policy. "
Figures released earlier by the Commerce Department showed U.S. personal spending continued to grow in September, although it only increased by 0.6% after increasing 1.0% in August, reflecting what seems like a temporary effect from the Delta variant.
Other data showed inflationary pressures continued to mount, with a basket of personal consumption spending rising 0.2 percent month on month, down slightly from 0.3 percent in August.
Figures released earlier by the commerce department showed US personal spending grew more slowly in September, just 0.6% after rising 1.0% in August, reflecting what appeared to be a temporary impact from the Delta variant COVID-19 virus.
Elsewhere, shares of Zendesk fell 19%, after being downgraded by analysts following the announcement of the $4.1 billion acquisition of Momentive, SurveyMonkey's parent company.
Lucid Group's stock extended Thursday's gains by 3.9%. The company said Thursday that electric vehicle deliveries to its customers will begin this week.
Chevron and Exxon Mobil shares rose 1.0% and 0.9%, respectively, after both oil companies reported strong profits on the back of a rebound in crude oil prices.
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