Traders on the floor of the NYSE, May 17, 2022.
U.S. stock futures rose early Wednesday morning after the Nasdaq Composite dropped during the regular session, following a warning of slowing growth from social media company Snap that hurt the tech-heavy index.
Dow Jones Industrial Average futures rose 51 points, or 0.16%. S&P 500 and Nasdaq 100 futures climbed 0.37% and 0.65%, respectively.
Nordstrom shares jumped more than 9% in extended trading after the retailer surpassed sales expectations and raised its full-year outlook. The retailer experienced 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 slid 0.8%. The Dow rose by 0.2% in a late-day reversal, despite falling as much as 1.6% earlier in the session.
The losses in the Nasdaq came after a warning from Snap spooked the digital advertising industry, which dinged social media stocks including Facebook parent Meta, Twitter, and Google parent Alphabet. Snap’s stock price tumbled 43% during the regular session after the company said it will miss its own earnings and revenue targets.
“It tells me how much technology and comm services are still over-owned, right, because they’re the ones that are getting hit the hardest, and for good reason. Snap was really a big surprise for just about everybody,” Stephanie Link, chief investment strategist and portfolio manager at Hightower, said Tuesday on CNBC’s “Closing Bell.”
“I think that we’re in just really challenging times. I’ve been saying we’re going to be in a choppy environment all year long because there are so many unknowns,” she continued.
Traders will continue to parse through earnings reports this week to see how companies are handling inflationary pressures. Dick’s Sporting Goods is expected to report earnings Wednesday before the bell. Snowflake and Nvidia are set to post quarterly reports after the bell.
On the economic front, traders are also watching for the latest reports on weekly mortgage applications and durable goods orders before markets open. Investors are expecting the latest meeting minutes from the Federal Open Market Committee.