US open: Stocks mixed after PCE data, Amazon helps Nasdaq rebound

US stock markets opened mixed on Friday as the Nasdaq bounced back after some heavy falls while other indices searched for direction in the wake of key inflation data.

The Dow Jones Industrial Average was down 0.2% early on, while the S&P 500 rose 0.1%.

The Nasdaq, however, was up nearly 1% in early deals as the tech-heavy index attempts to claw back some losses following disappointing results from heavyweights Alphabet and Meta Platforms over recent days. Ahead of today's open, the index had lost 4.1% of its value in the past two sessions alone.

However, results from retail titan Amazon.com and tech group Intel were providing a lift.

The US Federal Reserve’s preferred inflation gauge eased in September, according to figures released on Friday by the Commerce Department. The core personal consumption expenditure (PCE) price index - which excludes food and energy - was up 3.7% on an annual basis, down from a downwardly revised 3.8% a month earlier. This was in line with expectations.

Oxford Economics said the small decline "reflects the stickiness of core services inflation, which is still too strong to be consistent with inflation falling back to the Fed's 2% target". However, market expectations for the Fed to still keep interest rates steady when it meets next week.

In other economic data, personal incomes rose 0.3% in September after 0.4% growth in August, slightly missing the 0.4% forecast. Personal spending growth, however, picked up to 0.7% from 0.4% (consensus: +0.5%).

Chevron and Exxon disappoint

Shares in Chevron dived 5% after the US oil and gas giant missed expectations with third-quarter profits, as the bottom line shrunk by 42% year-on-year. The California-based company reported total earnings of $6.53bn for the three months to 30 September, down from $11.23bn a year earlier, which it said was due to lower upstream realisations and lower margins on refined product sales. Adjusted earnings per share fell to $3.05, down from $5.56 previously and significantly below the $3.70 expected by the market.

Natural gas giant ExxonMobil saw profits fall in the three months ended 30 September but still opted to raise its interim dividend amid heightened crude prices. ExxonMobil earned $9.07bn, or $2.25 per share in the period, down from the record-breaking $19.66bn, or $4.68 per share it pulled in a year earlier. Removing certain items, earnings came in at $2.27 per share but were still short of expectations for $2.36 per share.

However, Amazon.com impressed the market with earnings ahead of expectations, with profits trebling to $9.9bn, on revenues that rose 13% to $143.1bn. What's more, the ecommerce giant said fourth-quarter net sales would likely be between $160bn and $167bn.

Meanwhile, Intel shares were up over 10% after beating third-quarter forecasts and guiding to a better outturn for the fourth quarter. Earnings fell 31% year-on-year to 41 cents a share, but still smashed the 22 cents consensus estimate.