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Market Snapshot: Nasdaq-100 futures tumble as Snap seen dragging down Internet stocks

U.S. stock futures pointed to a flat to weaker start on Friday, with technology set to come under pressure after troubling results from Snap and Intel. That’s as investors were waiting to see if the S&P 500 can manage another record close.

How are stock-index futures trading?

Dow Jones Industrial Average futures

were steady at 35,498

S&P 500 futures

were modestly lower at 4,539

Nasdaq-100 futures

dropped 0.4% to 15,427

On Thursday, the Dow Jones Industrial Average

fell 6 points, or 0.02%, to 35,603, the S&P 500

increased 14 points, or 0.3%, to a record 4,549.78, and the Nasdaq Composite

gained 94 points, or 0.62%, to 15216.

What’s driving the market?

In a year that has seen stock-market indexes hit record after record, the S&P 500 hadn’t reached a new high since Sept. 2. A largely upbeat earnings season has gotten the index there this time, though worries over inflation, the continuing COVID-19 pandemic and troubles for China’s economy hover in the background.

While the S&P could squeak out another high on Friday, the going may be tougher for technology stocks and the Nasdaq after Snapchat parent Snap

late Thursday forecast a weaker-than-expected holiday season, mostly blaming privacy changes by Apple

on iOS devices for an expected revenue drop.

Opinion: Snap points to possibility of Apple causing the long-feared ‘ad-mageddon’

“Apple’s new privacy policy is likely to act as a headwind for not just Snap but for the broader sector, the extent of which will be laid bare next week when some of the other social media behemoths such as Facebook release their quarterly results,” said Victoria Scholar, head of investment at Interactive Investor, in a note to clients.

“Expectations are that Facebook could face similar issues with the potential for a revenue hit of its own,” she said, adding that a more-than-20% drop in Snap shares after those results have led to a 60% retracement of year-to-date gains.

Across the internet sector, shares of Facebook

fell nearly 4%, Twitter

4.5%, and Google parent Alphabet

slipped 1%.

Elsewhere in tech, Intel

shares fell 9% in premarket trading, after the chip maker’s revenue and data-center sales just missed expectations, while it also forecast a lower-than-expected earnings and gross margins forecast.

Read: Facebook struggles to figure out how many users it actually has

Honeywell International
Seagate Technology Holdings
Schlumberger Ltd.

and American Express Co.

are due to report results Friday.

Some relief over China Evergrande

may have arrived, after a government newspaper reported the troubled property giant made an overdue $83.5 million payment to foreign bondholders.

The only data on tap are flash Markit manufacturing and services purchasing managers indexes for October.

Meanwhile in politics, President Joe Biden said at CNN town hall meeting Thursday evening that he probably doesn’t have the votes to boost corporate taxes. He also said he would alter or eliminate the filibuster to protect voting rights, and would consider using the National Guard to unclog the supply chains.

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