The tech sector is taking a hit after Snap's results
Stock futures are mostly lower this morning, with Nasdaq-100 Index (NDX) futures sliding after a disappointing earnings report from social media concern Snap (SNAP). The Snapchat parent's results are putting pressure on other social media stocks and heavy hitters in the tech sector, pushing futures on the S&P 500 Index (SPX) into the red as well. Meanwhile, Dow Jones Industrial Average (DJIA) futures are brushing off the news, and sport a 66-point lead.
Continue reading for more on today's market, including:
- Blue-chip drug stock could keep outperforming.
- How to trade out-of-the-money options.
- Plus, more on SNAP earnings; what's boosting American Express stock; and why Verizon stock is sinking.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.32 million call contracts and 931,900 put contracts traded on Thursday. The single-session equity put/call ratio rose to 0.70, and the 21-day moving average remained at 0.67.
- Shares of Snap Inc (NYSE:SNAP) are tanking in electronic trading, last seen 33.3% lower, after the company reported its slowest quarterly sales growth since going public. Snap noted tougher economic conditions and growing digital ad dollar competition has it on pace for flat sales in the current quarter. Year-to-date, SNAP is down 65.2%.
- American Express Company (NYSE:AXP) boasts a 5% premarketing lead, and is looking to rally from an 8.2% year-to-date loss, following its second-quarter top- and bottom-line beat. A rebound in travel and entertainment saw American Express card members log record spending.
- Meanwhile, Verizon Communications Inc. (NYSE:VZ) was last seen down 4% ahead of the open, after it fell short of second-quarter earnings estimates. Verizon also cut its full-year forecast, with phone subscriber growth dented by higher prices. VZ has shed 14.8% in the last 12 months.
- The S&P Global U.S. manufacturing purchasing managers' index (PMI) and the services PMI are due out today.
European Markets Rising After PMI Reading, Rate Hike
Asian markets once again settled on both sides of the aisle today. Japan’s Nikkei added 0.4%, rising after the country’s core consumer price index (CPI) rose 2.2% year-over-year in June – keeping above the Bank of Japan’s (BOJ) 2% target for the third-straight month. Hong Kong’s Hang Seng also inched higher to end the week, adding 0.2%. Elsewhere, China’s Shanghai Composite and the South Korean Kospi shed 0.06% and 0.7%, respectively.
Markets in Europe, meanwhile, are higher midday, as investors continue to unpack Thursday’s rate hike decision from the European Central Bank (ECB). Today’s data showed the Euro zone’s flash purchasing managers’ index (PMI) reading of 49.4 came in below the 50 mark that separates growth and contraction. The German DAX is up 0.4% at last check, while the French CAC 40 rises 0.3%, and London’s FTSE 100 adds 0.07%.