Traders on the floor of the NYSE, May 17, 2022.
U.S. stock futures rose late on Tuesday after the Nasdaq Composite fell during the regular session, following a slowing growth warning from social media firm Snap that hurt the index with a strong technological component.
Dow Jones Industrial Average futures rose 111 points, or 0.4%. S&P 500 and Nasdaq 100 futures rose 0.4% and 0.6% respectively.
Nordstrom shares jumped more than 10% in extended trading after the retailer beat sales expectations and raised its full-year outlook. The retailer has seen a surge in demand from shoppers refreshing their closets for “long-awaited occasions”.
The Nasdaq Composite fell 2.4% during regular trading while the S&P 500 slipped 0.8%. The Dow rose 0.2% in a late-day reversal, despite falling 1.6% earlier in the session.
The Nasdaq losses came after a warning from Snap spooked the digital advertising industry, which rattled social media stocks including Facebook parent company Meta, Twitter and Google parent Alphabet. Snap’s share price fell 43% in the regular session after the company said it would miss its own profit and revenue targets.
“It tells me how technology and communication services are still too possessed, doesn’t it, because those are the ones that are being hit the hardest, and for good reason. Snap was really a big surprise for just about everyone,” Stephanie Link, chief investment strategist and portfolio manager at Hightower, said on CNBC’s “Closing Bell” on Tuesday.
“I think we’re going through a really tough time. I said we’re going to be in a rough environment all year because there are so many unknowns,” she continued.
Traders will continue to analyze earnings reports this week to see how companies are handling inflationary pressures. Dick’s Sporting Goods is expected to release results on Wednesday before the bell. Snowflake and Nvidia are expected to release quarterly reports after the bell.
On the economic side, traders are also watching for the latest reports on weekly mortgage applications and durable goods orders before markets open. Investors await the final minutes of the Federal Open Market Committee meeting.