The NASDAQ appears set for a dismal start to the week after a string of disappointing earnings reports from several technology giants, including Soho.com Inc. (NASDAQ/SOHU) and Changyou.Com Limited (NASDAQ/CYOU), continue to sap risk appetite.
A more-than eight percent dive in China’s benchmark Shanghai Composite Index also exacerbated fears about a slowdown in the Chinese economy. The slide in Chinese stocks, hurt by Friday’s weak Purchasing Manager’s Index (PMI) data for the country, as well as a sell-off in commodities, set the tone for trading in U.S. equity markets.
As of 9:00 a.m. E.T., the NASDAQ Composite Index futures were down 34.25 points or 0.75%. Other broad-based indices including the S&P 500 and the Dow Jones Industrial Average were also trading lower.
Top Technology Stories
Changing of the Guard
Shares of Amazon.com Inc. (NASDAQ/AMZN) surged more than 10% on Friday, following a blockbuster earnings report. The ecommerce giant’s market capitalization is now about $250 billion. That means Amazon is now worth $30.0 billion more than Wal-Mart Stores Inc. (NYSE/WMT) and five-times more than Target Corp. (NYSE/TGT).
Could This be Apple’s Next Move?
Apple Inc. (NASDAQ/AAPL) pulled Google Inc.’s (NASDAQ/GOOG, GOOGL) Nest smart thermostat from its website earlier this month. Analysts speculate the move signals the company is working on a smart thermostat of its own. The last time Apple discontinued a line of products—“Jawbone Up” and Nike, Inc.’s “+ Fuel Band”—it was making way for the Apple Watch.
Fiat Chrysler Automobiles NV (NYSE/FCAU) is recalling 1.4 million vehicles that can be remotely hacked over the Internet. A flaw in several Chrysler models allows hackers to remotely control them, posing an unprecedented danger to drivers. After the vulnerability was uncovered on Tuesday, Chrysler offered a software upgrade that it recommends customers install “at their earliest convenience.”
Facebook Beats Shareholders
A federal appeals court on Friday said Facebook Inc. (NASDAQ/FB) officials cannot be sued by shareholders. Plaintiffs argued the social media company concealed threats to its growth prospects before its May 12 initial public offering. But in a 3-0 decision, the judges found shareholders lacked legal standing to sue Facebook directors and underwriters led by Morgan Stanley.
No More BlackBerrys
BlackBerry Limited (NASDAQ/BBRY) may be forced to stop making smartphones if the company’s turnaround efforts fail to gain traction. In an interview on Friday, Chief Executive John Chen said he might reduce the number of models, discontinue lower-end devices, and focus more on corporate professionals in order to bring the technology company back to profitability. However, he did not rule out a complete full exit from the handset market.
Top Stocks to Watch
Box, Inc. (NYSE/BOX)
Analysts at Pacific Crest upgraded shares of the cloud services provider to “overweight,” citing new partnerships and major customer additions.
Best Buy Co., Inc. (NYSE/BBY)
The electronics retailer announced plans to begin selling Apple’s Apple Watch at stores in August.
Amazon.com, Inc. (NASDAQ/AMZN)
According to London’s Sunday Telegraph, the ecommerce giant plans to open its first drive-thru grocery store in Silicon Valley.
MediciNova Inc. (NASDAQ/MNOV)
The biopharmaceutical received FDA approval for a clinical trial of its flagship Tipelukast drug. The drug is a treatment for liver infections.
Shocking: This Could Lead to an Economic Collapse in 2015
How safe is your portfolio from a stock market crash? While government officials try to soothe investors’ fears with a lot of “happy talk,” new indicators suggest financial markets may be on the verge of collapse. In fact, it’s starting to happen already.
In a special investor presentation, Profit Confidential Editor-in-Chief Michael Lombardi outlines exactly what the next financial crisis will look like as well as how to protect your savings. To get the full story, check out his report, “The Great Crash of 2015.”