The writing is on the wall that it is going to be a decidedly negative start for the cash market.
Consider this graffiti: the S&P futures are down 23 points and are trading 1.5% below fair value; the Nasdaq 100 futures are down 120 points and are trading 3.1% below fair value; and the Dow Jones Industrial Average futures are down 159 points and are trading 1.0% below fair value.
The selling will hit the Nasdaq the hardest and that's because Amazon.com (AMZN) and Alphabet (GOOG) are indicated 6.6% and 4.5% lower, respectively, following their third quarter earnings reports.
Amazon investors were peeved that the growth rate for the company's cloud business decelerated and that Amazon provided fourth quarter revenue guidance below analysts' average estimate. Alphabet investors were bothered by the company's revenue shortfall for the third quarter and rising traffic acquisition costs.
The knock for the broader market, though, is that the disappointments from these leading (and widely-held) companies fed into the peak-growth concerns that have afflicted the market this month.
Accordingly, there has been a quick rollback of Thursday's rally effort. There are renewed concerns, too, that the October sell-off has yet to run its course and that a V-shaped recovery is a fading proposition without the support of the market's most heavily-weighted components.
There were a ton of reports after yesterday's close and before today's open. They weren't all bothersome. Intel (INTC), for instance, topped estimates and guided fourth quarter revenue and EPS estimates above consensus, citing strong demand.
Shares of INTC are indicated 1.9% higher, yet it is clearly an outlier right now in terms of driving market sentiment.
Turning to the Advance Q3 GDP report, it produced some good headline news. Real GDP increased at an annualized rate of 3.5% (Briefing.com consensus 3.3%) while the price deflator checked in at a lower-than-expected 1.7% (Briefing.com consensus 2.1%).
Personal spending (PCE) was robust, up 4.0%, which was the strongest pace of growth since the fourth quarter of 2014. PCE contributed 2.69 percentage points to the change in real GDP. The change in private inventories was the other big contributor, adding 2.07 percentage points.
The latter may have been helped by inventory building in front of increased tariff actions. Imports, which are a subtraction in the calculation of GDP, were up 9.1%. Net exports, then, subtracted 1.78 percentage points from the change in real GDP.
The key takeaway from the report is that real final sales of domestic product, which subtracts the change in private inventories, were up just 1.4% -- the weakest growth rate since the fourth quarter of 2016.
The relatively weak pace of real final sales growth will be another data point that can play into peak-growth concerns, particularly since the GDP report is backward looking.
The stock market is forward looking and it is finding reason to question the achievability of 2019 earnings growth estimates. That is the message embedded in the multiple compression seen this month and in falling stock prices that are set to fall further at today's opening bell.