Here are five things you must know for Friday, April 30:
1. -- Stock Futures Fall as Traders Weigh Earnings
Stock futures declined Friday following another record closing high for the S&P 500 as investors paused at month's end to weigh earnings from the likes of Amazon.com (AMZN) - Get Report and Twitter (TWTR) - Get Report.
Contracts linked to the Dow Jones Industrial Average declined 164 points, S&P 500 futures were down 24 points and Nasdaq futures fell 103 points.
The benchmark 10-year Treasury yield edged higher to 1.645% early Friday.
The S&P 500 closed at a record high Thursday after economic data pointed to a brisk recovery for the U.S. economy in the first quarter and earnings from Apple (AAPL) - Get Report and Facebook (FB) - Get Report crushed expectations.
The U.S. economy expanded at a 6.4% annualized rate in the first three months of 2021 amid fresh stimulus from the U.S. government, continued support from the Federal Reserve and the rollout of COVID-19 vaccinations.
With most signs pointing to a rebounding U.S. economy, traders have turned their focus to corporate earnings, which largely have exceeded Wall Street’s expectations. According to Bloomberg, of the 284 companies in the S&P 500 that have reported results so far, 89% have met or topped estimates.
2. -- Amazon Smashes Expectations as Revenue Surges 44%
Amazon.com (AMZN) - Get Report reported first-quarter earnings that easily topped estimates, thanks in part to a surge in revenue from its web services division.
The stock rose 2.47% in premarket trading Friday to $3,557.09.
Revenue jumped 44% from last year to $108.5 billion, topping analysts' estimates of $104.55 billion. First-quarter earnings were a record $15.79 a share, also higher than analysts’ estimates.
Looking into the current second quarter, Amazon said it expects operating income of between $4.5 billion to $8 billion on revenue in the range of $110 billion to $116 billion, higher than expectations.
Sales at Amazon Web Services, the group's market-leading cloud business, rose 32.1% to $13.5 billion.
The company said Prime Day, Amazon's annual shopping bonanza, will take place in the second quarter.
"Overall, there is not much to complain about here, as Amazon's blowout quarter was driven by broad-based strength across the business, and it proved what we have been saying in that Amazon is so much more than a pandemic play," said Jim Cramer and the Action Alerts PLUS team, which holds Amazon in its portfolio.
3. -- Twitter Slumps on User Miss, Lukewarm Forecast
Twitter (TWTR) - Get Report posted better-than-expected first-quarter earnings and revenue but the stock fell sharply after the social media company fell short on expectations for user growth and issued a lukewarm forecast.
Twitter reported earnings of 16 cents a share, 2 cents higher than analysts' forecasts. Revenue rose 28% in the first quarter to $1.04 billion, but lagged the growth at digital advertising rivals such as Facebook and Alphabet's (GOOGL) - Get Report Google.
Twitter’s total number of monetizable daily users grew by 7 million from the fourth quarter to 199 million, but fell shy of analysts’ expectations of 200 million.
For the second quarter, Twitter said it expects revenue of between $980 million and $1.08 billion. Analysts have been calling for $1.05 billion.
The stock sank 12.37% to $57.04 in premarket trading Friday.
4.-- Friday's Calendar: Exxon and Chevron Earnings, Consumer Sentiment
Earnings are also expected Friday from AbbVie (ABBV) - Get Report, Colgate-Palmolive (CL) - Get Report, LyondellBasell Industries (LYB) - Get Report, Clorox (CLX) - Get Report, Newell Brands (NWL) - Get Report and Goodyear Tire & Rubber (GT) - Get Report.
The U.S. economic calendar Friday includes Personal Income and Outlays for March at 8:30 a.m. ET, Chicago PMI for April at 9:45 a.m. and Consumer Sentiment for April at 10 a.m.
5. -- Jaguars Select Clemson QB Trevor Lawrence With First Pick in NFL Draft
Lawrence went 34-2 as the starter at Clemson and led the Tigers to three Atlantic Coast Conference titles and a national championship in 2019.
The New York Jets chose Brigham Young quarterback Zach Wilson with the second pick in the draft.