Traders on the ground of the NYSE, May 17, 2022.
Source: NYSE
U.S. inventory futures rose early Wednesday morning after the Nasdaq Composite dropped in the course of the common session, following a warning of slowing development from social media firm Snap that damage the tech-heavy index.
Dow Jones Industrial Average futures rose 51 factors, or 0.16%. S&P 500 and Nasdaq 100 futures climbed 0.37% and 0.65%, respectively.
Nordstrom shares jumped greater than 9% in prolonged buying and selling after the retailer surpassed gross sales expectations and raised its full-year outlook. The retailer skilled a surge in demand from buyers refreshing their closets for “long-awaited events.”
The Nasdaq Composite fell 2.4% throughout common buying and selling whereas the S&P 500 slid 0.8%. The Dow rose by 0.2% in a late-day reversal, regardless of falling as a lot as 1.6% earlier within the session.
The losses within the Nasdaq got here after a warning from Snap spooked the digital promoting business, which dinged social media shares together with Facebook mum or dad Meta, Twitter, and Google mum or dad Alphabet. Snap’s inventory value tumbled 43% in the course of the common session after the corporate mentioned it is going to miss its personal earnings and income targets.
“It tells me how a lot know-how and comm companies are nonetheless over-owned, proper, as a result of they’re those which can be getting hit the toughest, and for good purpose. Snap was actually a giant shock for almost everyone,” Stephanie Link, chief funding strategist and portfolio supervisor at Hightower, mentioned Tuesday on CNBC’s “Closing Bell.”
“I feel that we’re in simply actually difficult instances. I’ve been saying we will be in a uneven atmosphere all 12 months lengthy as a result of there are such a lot of unknowns,” she continued.
Traders will proceed to parse by earnings stories this week to see how firms are dealing with inflationary pressures. Dick’s Sporting Goods is predicted to report earnings Wednesday earlier than the bell. Snowflake and Nvidia are set to submit quarterly stories after the bell.
On the financial entrance, merchants are additionally waiting for the most recent stories on weekly mortgage functions and sturdy items orders earlier than markets open. Investors predict the most recent assembly minutes from the Federal Open Market Committee.