Tech Weakness Weighs as Broadcom and CrowdStrike Guidance Disappoint

US equity futures are mixed this morning as technology stocks come under pressure following last night’s earnings reports from Broadcom* and CrowdStrike. Both companies beat the Street on earnings, but guidance appeared to disappoint investors, sending Broadcom down 14.4% and CrowdStrike down 9.9% in premarket trading. The reaction has sparked broader weakness across memory and semiconductor stocks, with NASDAQ futures down 1.2% while Dow futures are up 0.9%.

Globally, stock markets have been mixed so far today as investors digest technology earnings, economic data, and continued swings in commodity prices. In Asia, the Nikkei declined 1.3% while the Hang Seng fell 1.5%. In Europe, the DAX is up 0.7% while the FTSE is down 0.2%.

On the economic front, Eurozone retail sales came in ahead of expectations at 1.0% versus the Street at 0.3%, while US weekly initial jobless claims were slightly worse than expected at 225K versus the Street at 213K. Investors may also be looking ahead to tomorrow’s North American employment reports, with US nonfarm payrolls for May due Friday morning, where the Street is looking for 85K versus the previous 115K. Canadian monthly employment change is also due, with the Street looking for a gain of 10K versus the previous decline of 17.7K.

In commodities, Crude Oil is down 3.3%, trading near $92.50/bbl, while Gasoline is down 2.9%, trading just above $3.00/gallon. Gold is up 1.4%, Silver is up 1.3%, and Copper is up 0.3%.

In rates, the US 10-year Treasury note yield is steady just below 4.50%, while the US 30-year Treasury note yield is steady just below 5.00%. The US dollar is falling back against other currencies today, with the Euro up 0.4% and the Loonie up 0.1%.

Broadcom* reported earnings per share of $2.44 versus the Street at $2.40, while CrowdStrike reported earnings per share of $1.10 versus the Street at $1.07%.

*Shares of Broadcom are held in some portfolios managed by SIA Wealth Management.

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