Here are five things you must know for Friday, Oct. 25:
1. -- Stock Futures Point to a Mixed Start for Wall Street
U.S. stock futures were mixed Friday after shares of Amazon.com (AMZN) - Get Report took a hit following a disappointing earnings report, and uncertainties remained over the status of U.S.-China trade negotiations.
Contracts tied to the Dow Jones Industrial Average rose 4 points, futures for the S&P 500 rose 3.30 points, and Nasdaq futures gained 13.50 points.
Stocks in Asia ended Friday's session mixed while European stocks declined amid the U.K.'s long drawn out process to leave the European Union.
U.S. Vice President Mike Pence adopted a hard line toward China in a speech Thursday.
He accused companies, including Nike (NKE) - Get Report and the NBA, of being too willing to ignore Chinese pressure and censorship and repression in pursuit of profits. He also said the FBI has 1,000 active investigations into intellectual property theft, most of them involving China, according to the Associated Press.
The economic calendar in the U.S. Friday includes Consumer Sentiment for October at 10 a.m. ET.
2. -- Amazon Slumps as Profit Falls for First Time Since June 2017
Amazon.com was down more than 5% in premarket trading Friday after posting quarterly earnings that fell for the first time since June 2017 and widely missed estimates as the tech and online retailing giant pushes for faster delivery times.
Earnings in the third quarter were $4.23 a share on revenue of $69.98 billion, vs. year-earlier profit of $5.75 a share on sales of $56.58 billion.
Wall Street was expecting earnings of $4.59 a share on sales of $68.83 billion.
Revenue at the company's AWS segment was $9 billion, falling short of FactSet's consensus estimate of $9.1 billion. Operating income was $2.26 billion.
For the seasonally strong fourth quarter, Amazon said it expects revenue of $80 billion to $86.5 billion, below consensus of $87.39 billion. The company also guided for fourth-quarter operating income of $1.2 billion to $2.9 billion, down from $3.8 billion a year earlier and below a $4.19 billion consensus.
The company reiterated it would sacrifice some near-term profits in order to drive additional growth and boost customer loyalty.
Amazon's one-day delivery efforts boosted global shipping costs in the third quarter by 46% to $9.61 billion, up from 36% in the second quarter and 21% in the first quarter.
"It has most certainly become clear that 2019 has been, and will end, as an 'investment year' that will continue to weigh on margins and the stock's near-term performance, hence the recent sluggishness trading and the sharp after-hours decline after the bell," said Jim Cramer and the Action Alerts PLUS team, which holds Amazon in its portfolio. "But there will be a time in the future where Amazon reaps what they sow, and we want to make sure we are invested for that."
The stock fell 5.66% in premarket trading to $1,680 in premarket trading.
3. -- Intel Posts Earnings Beat as Data Center Growth Rebounds
Adjusted earnings in the quarter were $1.42 a share on revenue of $19.19 billion, up from $19.16 billion a year earlier. Analysts expected earnings of $1.23 a share on revenue of $18.05 billion.
Intel said revenue for its data center group rose 4% to $6.4 billion vs. estimates of $5.62 billion. Chief Financial Officer George Davis told Reuters that "data center came back much more strongly than even we anticipated this quarter."
The company's client-computing segment - Intel's biggest - posted revenue of $9.7 billion, above analysts' forecasts.
Intel said it expects fourth-quarter earnings of $1.24 a share on revenue of about $19.2 billion - analysts had called for earnings of $1.21 a share on revenue of $18.83 billion.
The chipmaker said it expects earnings of $4.42 a share for the year, up from a previous estimate of $4.40. Revenue guidance was raised to $71 billion from $69.5 billion.
Intel CEO Bob Swan described the quarter as the "best quarter in our company's history," with "data-centric" lines of businesses making up more than half of the overall revenue for the quarter.
4. -- Visa Rises on Strong Fourth-Quarter Earnings
Visa (V) - Get Report , the largest U.S. card network by cards in circulation and number of transactions, beat analysts' fiscal fourth-quarter earnings estimates, boosting shares in premarket trading Friday.
Adjusted earnings $1.47 a share, up from $1.21 a year earlier and above Wall Street forecasts of $1.43.
Revenue in the period rose to $6.1 billion from $5.4 billion and matched estimates.
Visa said payments volume, adjusted for foreign-currency fluctuations, rose 9% in its fourth quarter, while volume from cross-border transactions rose 7%.
Visa said it expects fiscal 2020 earnings growth in the mid-teens. It expects low double-digit revenue growth.
Shares rose 0.9% to $177.75.
5. -- AB Inbev Sinks on Profit Warning, Verizon's Earnings Top Forecasts
Anheuser-Busch InBev (BUD) - Get Report sank 8.5% in premarket trading after the world's biggest brewer posted weak third-quarter results on declines in beer shipments in both China and issued a profit warning for the full year.
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