5 Things to Know Before the Stock Market Opens

Stock futures are on the rise, with tech stocks leading the way after strong earnings reports from tech titans Apple and Amazon. Amazon is set to open at a record high after reporting cloud growth accelerated last quarter; Apple topped quarterly estimates and forecast record holiday-quarter revenue; Reddit shares are jumping on its earnings beat and solid forecast; and Netflix stock is rising higher after the streaming giant announced its first stock split in a decade. Here’s what you need to know.

Stocks futures are higher this morning as tech stocks rally following strong quarterly reports from Apple (AAPL) and Amazon (AMZN). The major indexes fell on Thursday as investors digested a disappointing earnings report from social media giant Meta (META) and the announcement of a U.S.-China trade truce. It was the second down day for the Dow and the S&P 500, which both fell on Wednesday after Federal Reserve Chair Jerome Powell warned a December rate cut was “not a foregone conclusion.” Futures tied to the Dow Jones Industrial Average are up 0.2%, while S&P 500 futures advance 0.8% and tech-heavy Nasdaq 100 contracts climb 1.3%. The yield on the 10-year Treasury note hovers at 4.11%, up slightly from 4.1% at yesterday’s close and also its highest level in three weeks. Bitcoin is trading around $109,500, up from yesterday’s low of about $106,400. Gold futures are little changed at $4,015 an ounce, while the West Texas Intermediate crude futures are down 0.4% to $60.30 a barrel.

Amazon (AMZN) shares are up more than 12% in premarket trading on Friday after the company posted strong third-quarter results driven by resilience in its core e-commerce business and growth in its cloud business. Revenue at Amazon Web Services, its cloud computing unit, jumped 20% year-over-year to $33 billion, accelerating from 17.5% in the prior quarter. The company also raised its full-year capital expenditures forecast to about $125 billion from $118 billion, in a sign it continues to invest aggressively in building out its capacity to host artificial intelligence workloads. The results put Amazon stock, the laggard of the Magnificent Seven so far this year, on track to open at its first record high since early February.

Apple (AAPL) is also on track to open at a fresh record after the iPhone maker beat estimates and forecast a strong holiday season in its fiscal fourth-quarter earnings report Thursday afternoon. Apple reported earnings of $1.85 a share on revenue that grew 8% to $102.47 billion. Apple’s high-margin services revenue rose to a record $28.75 billion. CEO Tim Cook said he expects a strong holiday season to drive a record quarter for both Apple and its flagship iPhone, with overall revenue growth expected to accelerate to between 10% and 12%. Shares of Apple are up more than 2% in early trading.

Shares of social media platform Reddit (RDDT) are up more than 11% in premarket trading after it blew past Wall Street’s expectations with its third-quarter report and issued strong guidance. Revenue grew 68% to $585 million, driven by ad revenue that surged 74%. Net income more than quintupled to $163 million, or 80 cents per share, also well ahead of analyst estimates. Its revenue and earnings forecasts for the current quarter also exceeded expectations, helping ease some concerns that AI-powered search features being rolled out by Google, a major source of Reddit’s traffic, would hurt user growth.

Netflix (NFLX) on Thursday announced a 10-for-1 stock split, its first in a decade. Netflix shareholders as of Nov. 10 will receive nine additional stock units for every share they own. They’ll receive those shares on Nov. 14, and the stock will begin trading on a split-adjusted basis on Nov. 17. The streaming giant’s shares closed at $1,089 on Thursday, making it the ninth-most expensive stock in the S&P 500, and one of only 10 companies in the index with a stock price over $1,000. Netflix last split its stock in July 2015. Shares are up about 2% before the opening bell.

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