Stock futures mixed ahead of week’s final trading day
Stocks opened mixed on Friday as U.S. equity markets looked to extend a recent winning streak and cap off what’s been a positive week for the bulls.
Shortly after the opening bell, the Dow was up 0.5%, the most of the major indexes, while the S&P 500 was up 0.1% and the Nasdaq was off about 0.3%.
On Thursday, the Nasdaq led markets higher for the third-straight day, rising 1.3% to pace gains for the major indexes.
Earnings were in focus for investors early Friday, with the fallout from Snap’s disastrous quarter weighing on tech stocks. Shares of Snap (SNAP), which were down as much as 34% early Friday after another tough quarter for the social media company.
Snap reported revenue that was slightly light of estimates, but the company’s commentary on the overall ad market and its decision not to offer formal guidance spooked investors. The company also said third quarter revenue growth was tracking to flat over the prior year.
Shares of Meta Platforms were down over 5% early Friday in sympathy with Snap’s decline. Meta will report is own second quarter results next Wednesday after the market close.
Data from Bloomberg showed Snap’s decline took a collective $76 billion of market value off digital ad-related stocks, with shares of Alphabet (GOOG), Twitter (TWTR), and Pinterest (PINS) also falling on this news.
Results from American Express (AXP) out Friday morning were received positively by investors, with CEO Stephen Squeri telling Yahoo Finance he sees no signs of recession when looking at his business. The company raised its full-year revenue outlook, and shares were up as much as 6% in early trading on this news.
AmEx did increase provisions for credit losses in Q2 by $410 million, a move we saw big banks make last week as some consumers hunker down amid rising inflation.
The company said these results reflected, “advertising industry headwinds associated with the macro environment as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.”
In Europe, the Euro Stoxx 600 remained on pace for a weekly gain of 3%, which would be its best in two months.
The euro continues to trade near 1.01 against the dollar, with investors putting additional focus this week on events on the continent following Thursday’s decision from the ECB to raise interest rates for the first time in 11 years.
Earlier this week, reports regarding preparations for energy rationing in the eurozone over the coming months drew investor attention.
The price of crude oil was also lower Friday morning, falling about 1% as WTI crude oil continues to trade below $100 and gasoline prices in the U.S. come off the boil. The average price of a gallon of gas in the U.S. has now fallen now for 37 straight days to $4.41.
The price of WTI crude oil is now down about 20% from its most recent high above $122 reached back in early June.
This post will be updated.