Nasdaq futures drop as Facebook leads tech shares lower
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Traders in the NYSE Floor, Jan. 26, 2022.
Source: NYSE
Nasdaq 100 and S&P 500 futures fell Wednesday night, as traders pored through the latest batch of corporate earnings, which included disappointing numbers from tech giant Meta Platforms.
Futures tied to the Nasdaq 100 dropped 1.8%, and S&P 500 futures slid 0.7%. Dow Jones Industrial Average futures increased 68 points or 0.2%.
Following the disappointing quarterly profit, Facebook’s parent Meta Platforms shares plunged by more than 20% after hours trading. Also, the company issued weaker revenue guidance than anticipated for the current quarter.
Metropolitan Capital Advisors CEO Karen Finerman said that there was “a lot to dislike” in Meta’s report. Finerman spoke on CNBC’s “Fast Money.” The release’s “spookiest part” was the one that she mentioned.
Finerman said that it was a little too much.
Snap and Twitter were also among the social media companies that fell below Facebook shares. Snap shares dropped 17.4%, while Twitter fell more than 8% after the bell.
Spotify Technology saw a 11% drop in revenue after its latest quarter-end figures revealed a slower premium subscriber growth.
The major averages have a 4-day winning streak that began during the regular session. Wednesday night’s moves follow.
The Dow jumped more than 200 points on the day, while the S&P 500 and Nasdaq Composite advanced 0.9% and 0.5%, respectively. These gains were driven by tech shares rising, led by 7.3% increases in Alphabet shares.
The major averages have seen a four-day increase in trading volume, which has allowed them to reduce some of the steep losses they suffered from January’s downturn. Last month’s decreases were due to traders anticipating rate increases from the Federal Reserve.
Tony Dwyer, Canaccord, said that “it’s been an insane, volatile environment which is what happens during this transition period of economic policy and growth.”
Investors will be keeping an eye on the U.S. weekly jobless claims figures for economic data. Dow Jones economists expect that initial claims will fall to 245,000, from 260,000 according to Dow Jones.
After the unexpectedly downbeat data on private payrolls, these numbers will be released. ADP reported Wednesday that U.S. Private Payrolls fell by 301,000 in January. Dow Jones polled economists and predicted a gain by 200,000.
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