Traders on the floor of the NYSE, May 17, 2022.
U.S. stock futures rose on Tuesday night after Nasdaq Composite fell during a regular session, following warnings of a slowdown in growth from social media company Snap hitting a tech-heavy index.
The Dow Jones Industrial Average futures rose 111 points, or 0.4%. The S&P 500 and Nasdaq 100 futures rose 0.4% and 0.6%, respectively.
Nordstrom shares jumped more than 10% in extended trading while the retailer exceeded sales expectations and raised its full-year outlook. Retailers have experienced increased demand from buyers to refresh their closets for the “long-awaited event”.
The Nasdaq Composite declined 2.4% during regular trading while the S&P 500 declined 0.8%. Despite falling as much as 1.6% at the start of the session, the Dow rose 0.2% over the last day.
A warning from Snap has hurt Nasdaq after it threatened the digital advertising industry, misleading social media stocks, including Facebook’s core Meta, Twitter, and Google Parent alphabet. Snap’s stock fell 43% in the regular session when the company said it would miss its own earnings and revenue targets.
“It tells me how much technology and less services are still owned, right, because they are suffering the most, and for good reason. Snap was really a big surprise for almost everyone,” said Stephanie Link, chief investment strategist and portfolio manager at Hightower, on CNBC on Tuesday. Says in the “Closing Bell”.
“I think we’re in a really challenging time. I’ve been saying we’re going to be in a turbulent environment all year long because there are so many unknowns out there,” he continued.
Traders will continue to analyze through earnings reports this week to see how companies are coping with inflationary pressures. Dick’s Sporting Goods is expected to report earnings before the hour on Wednesday. Snowflake and Nvidia are ready to post quarterly reports in a matter of hours.
On the economic front, traders are also looking for weekly mortgage applications and the latest report on durable product orders before the market opens. Investors are expecting the latest meeting minutes from the Federal Open Market Committee.