S&P 500 futures are flat as investors digest latest earnings results, rising rates

Equity futures were little changed on Friday as investors weighed more corporate earnings reports and the prospect of a Federal Reserve rate hike.

Futures contracts linked to the Dow Jones Industrial Average lost 41 points, or 0.1%. S&P 500 futures fell 0.1%. Nasdaq 100 futures fell 0.5%.

The moves came after Snap reported quarterly revenue of $1.13 billion, which fell short of expectations. This income represents year-over-year growth of just 6%. Average revenue per user, a key metric for the company, fell 11% to $3.11.

Dow American Express Components fell more than 4% in premarket trading after its quarterly report.

“The mood is quite gloomy with stocks selling all over the place. The culprit behind the negativity is earnings with a host of disappointments in the world,” wrote Adam Crisafulli of Vital Knowledge.

Shares of Meta Platforms fell nearly 4% pre-market, while Alphabet fell 1.8%.

These movements come after the indices fell for a second day, with the Dow Jones losing 90.22 points, or 0.3%. The S&P 500 and the Nasdaq Composite fell 0.8% and 0.6% respectively.

It was a day that started off on better footing for the Dow Jones, which gained nearly 400 points to session highs, but rising Treasury yields threw cold water on stocks. The 10-year Treasury yield is trading at levels not seen since 2008. On Friday, it was trading around 4.26%.

Thursday’s trading fits a larger picture of nervous investors making instinctive decisions based on the day’s news, said Jamie Cox, managing partner of Harris Financial Group. He said investors are increasingly turning to short-term strategies as they see the Federal Reserve creating a volatile market as it seeks to lower inflation through interest rate hikes.

“The markets are looking for every sign that the inflation data is moving in a way that the Fed might cut its interest rate pace, and basically ignoring the speakers and the governors, and basically ignoring whatever the Fed has to say. say,” Cox said.

“It lends itself to very, very choppy exchanges because people are happy with the trigger and just waiting for the signal that the break is coming,” he said. “It’s a bad way to trade and it brings a lot of volatility.”

Major averages are still on track for a winning week, up more than 2% through Thursday.

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