CNBC/Fred Imbert

Dow set to fall more than 400 points after best month in three decades, Amazon leading tech lower

“Stock futures fell sharply early Friday as shares of Amazon and Apple dropped following their first-quarter results.

Dow Jones Industrial Average futures fell about 1.9% and indicated an opening drop of more than 450 points. S&P 500 futures fell 2.1%. Nasdaq 100 futures were down 2.3%.

Apple reported quarterly earnings that topped analyst expectations, but its revenue growth remained flat on a year-over-year basis. Also, the company did not offer guidance for the quarter ending in June amid uncertainty over the coronavirus outbreak. The tech giant’s stock traded more than 2.6% lower in premarket trading.

Amazon, another tech giant, saw its shares tumble 4.8% in premarket trading after announcing plans to spend all its second-quarter profits on its coronavirus response. The e-commerce behemoth also posted a first-quarter profit that missed analyst expectations.“

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REUTERS/Tom Arnold

World stocks fall further after Trump’s China tariff threat

london stock exchange“World stocks pulled back further on Friday on grim U.S. economic data and President Donald Trump’s threat to impose new tariffs on China over the coronavirus crisis.

MSCI’s index of global stocks fell 0.4% after a tumble late Thursday broke a six-day winning streak for the index.

London-listed stocks slipped as data showed the UK housing market was grinding to a halt. The FTSE 100 was down 2.1%, wiping out gains posted earlier in the week on hopes of global economies reopening from weeks of lockdowns.

Another report said British manufacturers suffered the biggest fall in output and orders for at least three decades in April.

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“Serious damage” to emerge; gold prices yet to show true colors

not even close to full picture“Economic data has not yet reflected the true scale of the economic disaster we are facing, but as numbers come out in the coming weeks, a risk-off sentiment could ensue, this according to Jim Wyckoff, senior analyst at Kitco.

“We have big risks still ahead for the U.S. economy and for other economies around the world,” Wyckoff told Kitco News. “We are going to start to see economic data in the U.S. and in Europe show up that’s going to be really staggering, to remind us how serious the damage has been done to the global economy.”

Additionally, there remains uncertainties with how long the shutdown will continue, as well as how a recovery could ensue, he said.

“We don’t know how this COVID-19 is going to play out. Is there going to be a resurgence of sickness later on in the fall? How fast can businesses re-open? Those are just big unknowns right now,” he said.”

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REUTERS/Lindsay Dunsmuir

‘W-shaped’ recovery may be too optimistic, Fed’s Powell suggests

Jerome Powell“Federal Reserve Chair Jerome Powell has sketched out an altogether bumpier ride for the U.S. economy than many are predicting – one that sees business activity stop and start for months to come, until an effective treatment or vaccine for the novel coronavirus can be found.

Since the novel coronavirus outbreak in the United States, economic growth stalled almost overnight as “stay at home” orders shut down large parts of the economy. Economists and Trump administration officials have been divided about how deep and long-lasting the economic impact will be.

Some still foresee a “V shaped” recovery, in which the economy rebounds quickly from a temporary shock. Life in the United States could return to “normal” by June, White House senior adviser Jared Kushner said on Wednesday, adding that “the hope is that by July the country’s really rocking again.”

Others predict a “U shape,” where it takes longer to bounce back. The idea of a “W-shaped” recovery has also steadily gained traction as health experts increasingly warn about a resurgence in virus cases come the fall, and with it, a new downturn in economic growth.”

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