U.S. Stock Futures Changed After Weak Earnings Reports

U.S. stock futures were muted today morning after weak earnings reports from technology companies.

Futures of the Dow Jones Industrial Average surged 6 points. Meanwhile, S&P 500 futures and Nasdaq-100 futures both witnessed declines.

Shares of Intel recovered more than 8% after hours following a weaker-than-anticipated sales report. The semiconductor firm blamed an industry-wide chip shortage for its revenue miss.

Meanwhile, social media stocks also sank in extended trading after Snap announced its advertising business dipped due to Apple’s privacy changes. Snap shares slipped more than 21%, whereas Facebook and Twitter pulled back more than 4% after hours.

On Thursday, the S&P 500 notched both a new intraday high and a new record close. The broad index increased 0.3% for its seventh consecutive positive session. The Nasdaq Composite climbed 0.6%, while the Dow dropped 6.26 points or 0.02%.

Furthermore, Tesla shares closed 3% higher Thursday, supporting the S&P 500 and Nasdaq Composite.

Tesla helped raise the S&P 500 after strong earnings from the vehicle maker. This month, the S&P 500 has mounted a comeback as strong profit reports trumped concerns about inflation and a potential end to Fed bond buying. Remarkably, an index is now up 1.75% for the week and 5.62% for the month.

Despite supply chain and inflation headwinds, the latest reports showed that companies are posting strong profits so far this third-quarter reporting season. According to FactSet, out of 101 S&P 500 members who reported financial results, 82.6% have beat earnings expectations.

Investors are now waiting for earnings reports from American Express, Honeywell, Schlumberger, and Cleveland-Cliffs

Additionally, strong jobs data also added to the positive market sentiment. The Labor Department reported that initial jobless claims dropped to a new pandemic low of 290,000 last week. Remarkably, it was down 6,000 from the previous week and lower than the 300,000 anticipated by economists surveyed by Dow Jones.

Investors are now waiting for earnings reports Friday from companies including American Express, Honeywell, Schlumberger, and Cleveland-Cliffs.

HP Inc. gained 6.9% on strong earnings and raised guidance for 2022.

Other big tech stocks also helped lift the market. Nvidia surged 2.6%, whereas Netflix shares boosted 4.4%.

Additionally, American Airlines gained 1.9% after it recorded a profit due to federal aid for Q3 of 2021.

Asia-Pacific markets were mixed today, as shares of China Evergrande Group rose in Hong Kong. The rise came following media reports that Evergrande will pay off a coupon payment on a dollar-denominated bond.

Shares of Evergrande in Hong Kong gained 4.26% on Friday. Evergrande Property Services Group also witnessed its stock surge by 1.7%.

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