Traders on the floor of the NYSE, May 17, 2022.
US stock futures rose on Tuesday night after the Nasdaq Composite fell during the ordinary session, following a warning of declining growth from the social media company Snap which damaged the technology-heavy index.
Dow Jones Industrial Average futures rose 1[ads1]11 points, or 0.4%. The S&P 500 and Nasdaq 100 futures rose 0.5% and 0.7%, respectively.
The Nordstrom share rose more than 10% in expanded trading after the dealer exceeded sales expectations and increased the outlook for the full year. The retailer experienced an increase in demand from shoppers who freshened up their wardrobes for “long-awaited occasions.”
Nasdaq Composite fell 2.4% during normal trading while the S&P 500 fell 0.8%. The Dow rose 0.2% in a late-day reversal, despite falling as much as 1.6% earlier in the session.
The losses in Nasdaq came after a warning from Snap intimidated the digital advertising industry, which accelerated shares on social media, including Facebook parent Meta, Twitter and Google parent Alphabet. Snaps’ share price fell 43% during the regular session after the company said it would miss out on its own earnings and revenue targets.
“It tells me how much technology and communications services are still over-owned, right, because they are the ones hardest hit, and with good reason. Snap was really a big surprise for just about everyone,” said Stephanie Link, investment strategist and portfolio manager at Hightower. said Tuesday on CNBC’s “Closing Bell.”
“I think we are in really challenging times. I have said that we will be in a choppy environment all year round because there are so many strangers,” she continued.
Traders will continue to analyze income reports this week to see how companies handle inflationary pressures. Dick’s Sporting Goods is expected to report earnings on Wednesday before the bell rings. Snowflake and Nvidia are set to post quarterly reports after the clock.
On the financial front, traders are also looking for the latest reports on weekly mortgage applications and orders for durable goods before the markets open. Investors expect the latest minutes of the Federal Open Market Committee meeting.