Wall St. set to open lower on weak earnings, data – Business Insider

This article was originally published on this site

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 26, 2016. REUTERS/Brendan McDermid Traders work on the floor of the NYSE Thomson Reuters

By Yashaswini Swamynathan

(Reuters) – Wall Street was set to open lower on Friday following weak economic data and disappointing earnings from oil majors Exxon and Chevron.

Shares of Dow component Exxon fell 2.2 percent to $88.24 in premarket trading after the oil producer posted second-quarter revenue and profit well below analysts’ estimates.

Chevron also dropped 2.3 percent after posting its largest quarterly loss since 2001.

A slower-than-expected growth in second-quarter gross domestic product also weighed on investor sentiment.

The U.S. Commerce Department reported that GDP grew at a 1.2 percent rate, missing economists’ estimates of a 2.6 percent growth.

“There is nothing in the markets to be excited about and we are at all-time highs, which is not justified,” said Phil Davis, Chief Executive officer of PSW Investments.

“Its going to be a very low volume day today because there are simply no buyers in the market.

However, the Nasdaq futures were supported by a surge in shares of Google parent Alphabet and Amazon.com .

Dow e-minis were down 60 points, or 0.33 percent at 8:32 a.m. ET, with 35,825 contracts changing hands.

S&P 500 e-minis were down 5.5 points, or 0.25 percent, with 225,742 contracts traded.

Nasdaq 100 e-minis were up 1.25 points, or 0.03 percent, on volume of 29,373 contracts.

Alphabet’s shares surged 4.5 percent to $800 after the company’s second-quarter earnings handily beat analysts’ estimates. The stock was the top percentage gainer among S&P 500 companies in premarket trading.

Amazon.com was set to open at a record high of $768.52 after the company posted strong results and gave an upbeat forecast for the current quarter.

Wynn Resorts shares dropped 8.4 percent to $95.93 after the company announced a smaller-than-expected allocation of new tables for its new $4.2 billion casino in Macau.

Merck rose 1.4 percent to $59.25 after the drug maker’s second-quarter profit and revenue beat estimates.

(Reporting by Yashaswini Swamynathan in Bengaluru)

Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.