Stock futures rise as investors look past disappointing tech earnings, Meta shares crater

Traders on the floor of the NYSE, September 13, 2022.

Source: NYSE

Stock futures rose in overnight trading on Wednesday as investors appeared to ignore disappointing results from Metaplatforms.

Shares of Facebook’s parent company fell 18% in extended trading on a weak forecast for the fourth quarter. ServiceNow share, meanwhile, jumped more than 10% after an earnings beat.

Futures linked to the Nasdaq 100 traded up 0.13%, while S&P 500 futures gained 0.21%. Futures contracts linked to the Dow Jones Industrial Average rose 112 points, or 0.35%.

Stocks were mixed in Wednesday’s regular trading session as traders digested a disappointing quarter Alphabet reports and Microsoftand assessed what this means for future Federal Reserve rate hikes and economic growth.

The Nasdaq Composite and S&P 500 both posted three-day winning streaks, closing down 2.04% and 0.74% respectively. The Dow Jones Industrial Average ended slightly higher, gaining 2.37 points to 31,839.11 and closing its fourth consecutive positive session since September.

For the week, all major averages remain in positive territory, with the Dow and S&P up more than 2% and the Nasdaq up around 1%. The Dow Jones is on pace for its fourth consecutive positive week since ending its five-week streak in November 2021.

“Investors are still struggling to find direction and want clarity around earnings and what the Fed will do going forward,” said Adam Sarhan, CEO of 50 Park Investments. “Remember that the market is a forward-looking mechanism and earnings reports tell us what has happened in the past. Investors want clarity and certainty. Right now we still have a lot of uncertainty on many levels.”

Big tech earnings continue Thursday with results from Amazon and Apple. Revenues from Intel, McDonald’s, Merck and Caterpillar are also on deck.

Along with earnings, investors have their sights set on an advanced reading of third-quarter gross domestic product which should offer new clues about the state of the US economy.

September initial weekly jobless claims and durable goods are also scheduled for Thursday.

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