Nasdaq futures slide as Snap results weigh on tech stocks

Nasdaq futures fell on Friday as investors digested a new batch of corporate earnings that included disappointing results from Snap, which sent social media shares tumbling.

Dow Jones Industrial Average futures gained 42 points, or 0.2%. S&P 500 futures fell 0.1%, while Nasdaq 100-linked futures traded 0.3% lower.

All three major averages are set for weekly gains, with the tech-heavy Nasdaq Composite on track to close the week up 5.3%. The Dow Jones Industrial Average is on track for a 2.4% gain, while the S&P 500 is forecast to rise 3.5%.

Investors have enjoyed a strong week for markets, buoyed by a rally in tech stocks, as Wall Street absorbs better-than-feared second-quarter results.

Dow futures gained after a strong report from American Express. The credit card company jumped 3% premarket after reporting higher profits, citing high consumer spending on travel and entertainment.

Twitter fell 2% premarket after reporting disappointing second-quarter results that fell short of earnings, revenue and user growth. The social media company blamed challenges in the advertising industry, as well as “uncertainty” surrounding Elon Musk’s acquisition of the company, for the failure.

Snap shares plunged 28% in extended trading after Snapchat’s parent company released second-quarter results that missed analysts’ expectations and signaled it plans to cut hiring. The report was followed by a series of analyst downgrades on the stock.

Snap’s results weighed on other social media and technology stocks that investors feared could be hurt by slowing online ad sales. Shares of Meta Platforms and Pinterest fell 5% and 8% premarket, respectively, while Alphabet lost more than 2%.

Verizon fell more than 4% in premarket trading after the wireless network operator lowered its full-year forecast as higher prices hurt phone subscriber growth.

Nearly 21% of S&P 500 companies have reported earnings so far. Of those, 70% exceeded analyst expectations, according to FactSet.

The Invesco QQQ Trust fell 0.58% after hours.

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