Nasdaq futures dip after tech earnings fall flat

A specialist dealer works inside a sales space on the ground of the New York Inventory Alternate (NYSE) in New York Metropolis, October 6, 2021.

Brendan McDermid | Reuters

Futures on the Nasdaq 100 dipped in in a single day buying and selling Thursday after disappointing earnings studies from know-how corporations.

Nasdaq 100 futures fell 0.6%. Dow Jones Industrial Common futures shed 20 factors. S&P 500 futures ticked down 0.3%.

Shares of Intel retreated greater than 8% after hours following a weaker-than-expected gross sales report. The semiconductor firm blamed an industry-wide chip scarcity for its income miss.

Social media shares additionally dropped in prolonged buying and selling after Snap stated its promoting enterprise declined because of Apple’s privateness modifications. Snap shares sunk greater than 22% whereas Fb and Twitter every pulled again greater than 4% after hours.

In Thursday’s common session, the S&P 500 notched each a recent intraday excessive and new file shut. The broad index rose 0.3% for its seventh consecutive constructive session. The Nasdaq Composite rose 0.6%, whereas the Dow shed 6.26 factors, or 0.02%.

Buyers digested a slew of company earnings studies. Tesla shares closed 3% increased Thursday, offering assist to the S&P 500 and Nadaq Composite.

Firms are posting robust income to this point this third-quarter reporting season regardless of provide chain and inflation headwinds. Out of 101 S&P 500 members which have reported monetary outcomes, 82.6% have topped earnings expectations, in response to FactSet as of Thursday after the bell.

“In 1 / 4 the place we thought issues would decelerate and there was concern about what revenue margins have been going to appear to be, these corporations are nonetheless doing effectively,” stated Victoria Fernandez, chief market strategist at Crossmark World Investments.

Sturdy jobs information additionally added to the constructive market sentiment. Preliminary jobless claims fell to a brand new pandemic low of 290,000 final week, the Labor Division reported Thursday — down 6,000 from the earlier week and decrease than the 300,000 anticipated from economists surveyed by Dow Jones.

All three main averages are on monitor to shut the week increased for three-straight weeks of beneficial properties. On the month, all three indexes are up at the very least 5%.

Buyers await earnings studies Friday from corporations together with American Categorical, Honeywell, Schlumberger and Cleveland-Cliffs.

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