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Stocks Lower As Apple, Amazon Weigh, Facebook Goes 'Meta', Biden Goes to Rome - 5 Things You Must Know

Stocks lower as tech earnings weigh; Apple takes $6 billion sales hit from chip shortage; Amazon cautions on holiday quarter challenges; Facebook goes 'Meta' and President Joe Biden arrives for the G-20 Summit in Rome.

Here are five things you must know for Friday, October 29:

1. -- Stocks Futures Lower As Tech Earnings, Inflation Concerns Weigh 

U.S. equity futures slipped lower Friday as markets peeled away from another set of all-time highs last night following weaker-than-expected earnings from Apple  (AAPL) - Get Apple Inc. Report and Amazon  (AMZN) - Get Amazon.com, Inc. Report that signal supply chain chaos heading into the holiday season. 

The tech giants' disappointing September quarter earnings, alongside softer-than-expected forecasts, look set to rip around $200 billion in value out of the market at the start of trading while raising deeper concern for the fate of 'just-in-time' delivery for retailers and semiconductor suppliers for the broader tech sector into the final months of the year.

Investor sentiment is also starting to turn cautious amid the steady stream of corporate warnings on inflationary pressures and supply chain woes, with Bank of America noting the biggest move into cash by global fund managers this week since April 2020, and bond markets signaling their most bearish assessment on growth since the peak of the pandemic last year.

On the inflation front, the Federal Reserve's preferred metric -- the PCE Price Index -- will be published at 8:30 am Eastern time as market-based gauges are sitting at the highest levels since 2006. 

On Wall Street, futures contracts tied to the Dow Jones Industrial Average are indicating a 50point opening dip gain ahead of earnings from Chevron  (CVX) - Get Chevron Corporation Report and Exxon  (XOM) - Get Exxon Mobil Corporation Report, while those linked to the S&P 500 are priced for 22 point pullback following last night's record high close. 

Futures tied to the tech-focused Nasdaq Composite are indicating a 130 point slide following the weaker-than-expected earnings from last night for Amazon and Apple.

2. -- Apple Takes $6 Billion Sales Hit From Chip Shortage

Apple shares traded lower in pre-market dealing after the tech giant said supply chain woes ripped $6 billion from its September quarter sales amid the tech giant's first quarterly earnings miss in five years.

Apple's holiday quarter sales will also be hit by the chip shortage, Cook said, telling Reuters that "we're doing everything we can do to get more (chips) and also everything we can do operationally to make sure we're moving just as fast as possible."

Still, CFO Luca Maestri told investors on a conference call that December quarter sales would be "very solid", and likely hit a record high, with gross margins in the region of 41.5% to 42.5%.

Apple shares were marked 3.1% lower in pre-market trading to an opening bell price of $147.70 each.

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3. -- Amazon Cautions on Jobs, Costs Over Christmas

Amazon shares slumped lower in pre-market trading after the world's biggest online retailer forecast softer-than-expected holiday sales following a $2 billion hit from labor costs and supply chain disruptions to its third quarter earnings

Amazon CFO Brian Olsavsky cautioned that costs linked to hiring, inflation and other "operational disruptions" could rise to as high as $4 billion over the December quarter, while forecast for revenues of between $130 billion and $140 billion.

For the three months ending in September, Amazon posted net sales of $110.8 billion, a 15.2% increase from last year that fell just shy of Street forecasts. Its dominant Web services business, however, netted a better-than-expected $16.1 billion in sales. 

Amazon shares were marked 4.7% lower in pre-market trading to indicate an opening bell price of $3,285.00 each.

5. -- Facebook Goes 'Meta'

Facebook  (FB) - Get Meta Platforms Inc. Class A Report shares edged higher in pre-market trading as investors digested plans for a major re-branding of the world's biggest social media group and its $10 billion bet on the 'metaverse'.

Founder and CEO Mark Zuckerbeg said Thursday that Facebook's current branding remains too tied to a singular product -- its social media page --and argued that its myriad activities, as well as its drive to build a so-called shared virtual reality 'metaverse', necessitated a name change.

Meta, the new company name, will sit atop all of Facebook's current properties, although there will be no change in the current corporate structure. The stock will begin trading under the a new ticker -- MVRS -- on December 1. 

5. -- Mr. Biden Heads To Rome

President Joe Biden arrived in Rome Friday for a summit of G20 leaders expected to focus on the 'existential' threat from climate change ahead of next week's U.N. COP26 Summit in Scotland.

At the heart of the weekend discussions, which China will only participate in via a video link, will be the 2015 Paris Accord consensus that limits to keep global warming "well below" 2 degrees when compared to pre-industrial levels.

"We recognize that the impacts of climate change at 1.5 degrees are much lower than at 2 degrees and that immediate action must be taken to keep 1.5 degrees within reach," the G20 said in a draft communique.  

Committing to carbon neutrality by 2050 is seen as key in holding warming at the 1.5 degree level, although many of the world's biggest polluters -- including China -- are pushing for a target date of 2060.