Nasdaq set to open decrease after Intel margin warning

(Reuters) – The Nasdaq was set at a decrease open on Friday after chipmaker Intel warned of decrease revenue margins, whereas Snap Inc led declines amongst social media firms after reporting a blow to digital promoting due to Apple’s privateness modifications.

Merchants work on the ground of the New York Inventory Change (NYSE) in New York, United States, October 20, 2021. REUTERS / Brendan McDermid

Intel Corp fell 9.5% in pre-market buying and selling because it missed third-quarter gross sales expectations, whereas its chief government pointed to a scarcity of different chips holding again gross sales of the corporate’s flagship processors.

Provide chain considerations, inflationary pressures and labor shortages have been on the heart of the third quarter earnings season, with analysts anticipating S&P 500 earnings to rise 33 , 7% year-on-year, based on information from Refinitiv.

Some analysts, nonetheless, have mentioned such considerations will solely have a short lived influence on the earnings of mega-cap tech and communications firms this season.

“Intel has additionally produced lower than stellar outcomes. Shorting huge tech has been a great way to lose cash over the previous couple of years, and I solely count on a short lived aberration, ”wrote Jeffrey Halley, senior market analyst, Asia Pacific at OANDA in a buyer be aware.

The S&P 500 Index closed at a file excessive Thursday and is predicted to submit weekly positive factors of 1.8%, persevering with an uptrend for the third week in a row.

“The S&P is reaching new heights as we’re within the midst of the provision chain drawback, so the market is telling you ‘I am on it and I am not apprehensive’,” mentioned Eric Diton, president and CEO of Wealth Alliance in New York.

“We’re nonetheless in an surroundings of very low rates of interest, coupled with a world financial restoration that may have jolts and a Federal Reserve nonetheless accommodating, and this isn’t the contribution of a serious bear market. “

American Categorical Co rose 2.1%, which is predicted to spice up the Dow Jones Industrial Common on the opening, beating Wall Road earnings estimates for the fourth consecutive quarter.

Fb Inc fell 4.2% and Twitter Inc misplaced 3.2% after Snap Inc mentioned Apple Inc’s privateness modifications on iOS units have been hurting the corporate’s skill to focus on and measure its digital promoting.

Snap fell 20.0% on information and questioned subsequent week’s quarterly reviews from Fb and Twitter, social media firms that rely closely on advert income.

Apple edged up 0.2%. Different progress shares together with Tesla Inc, Microsoft Corp and Netflix Inc additionally rose, limiting declines within the Nasdaq 100 e-minis.

As of 8:26 a.m. ET, Dow e-minis have been up 62 factors, or 0.17%, S&P 500 e-minis have been up 3 factors, or 0.07%, and Nasdaq e-minis 100 have been down 29.75 factors, or 0.19%.

Mattel Inc jumped 7.7% after elevating its 2021 gross sales forecast on Thursday, saying it could overcome industry-wide delivery disruptions.

Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Enhancing by Arun Koyyur and Sriraj Kalluvila

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