Nasdaq futures fell Friday as investors digested a fresh batch of corporate earnings that included disappointing results from Snap, which sent social media shares reeling.
The Dow Jones Industrial Average futures gained 42 points, or 0.2%. The S&P 500 futures slipped 0.1%, while futures tied to the Nasdaq 100 traded 0.3% lower.
The three major averages are set for weekly gains, with the tech-heavy Nasdaq Composite on course to close out the week 5.3% higher. The Dow Jones Industrial Average is on track for a 2.4% advance, while the S&P 500 is set to rise 3.5%.
Investors have enjoyed a strong week for markets, fueled by a rally in tech stocks, as Wall Street absorbs second-quarter results that have come in better than feared.
Dow futures gained following a robust report from American Express. The credit card company jumped 3% in the premarket after reporting an earnings beat, citing high consumer spending in travel and entertainment.
Twitter fell 2% in the premarket after reporting disappointing second-quarter results that missed on earnings, revenue and user growth. The social media company blamed challenges in the ad industry, as well as “uncertainty” around Elon Musk’s acquisition of the company, for the miss.
Shares of Snap plummeted a whopping 28% in extended trading after the Snapchat parent posted second-quarter results that fell short of analysts’ expectations and noted that it plans to slow hiring. The report was followed by a slew of analyst downgrades on the stock.
The results from Snap weighed on other social media and technology stocks investors feared could get impacted by slowing online advertising sales. Shares of Meta Platforms and Pinterest fell 5% and 8% in the premarket, respectively, while Alphabet lost more than 2%.
Verizon dropped more than 4% in premarket trading after the wireless network operator cut its full-year forecast, as higher prices dented phone subscriber growth.
Nearly 21% of S&P 500 companies have reported earnings so far. Of those, 70% have beaten analyst expectations, according to FactSet.
The Invesco QQQ Trust slid 0.58% after hours.