Quotes of futures for US stock indices are falling on Friday against the backdrop of continued growth in US Treasury yields, as well as unfavorable corporate news.
Rising interest rates, high inflation and a slowdown in global economic growth affect the financial results of companies. Earnings for the 88 S&P 500 companies that have released quarterly earnings so far are down an average of 2.6%, according to Refinitiv data.
At the same time, in the case of 75% of the reported companies, profits were higher than market forecasts, Market Watch notes.
Shares of Snap Inc. lose in price more than 28% during the preliminary trading on Friday. The company that owns the Snapchat app recorded the lowest revenue growth rate in its history in the third quarter of 2022. The indicator increased by less than 6% in annual terms, to $1.13 billion.
“Our revenue growth continued to slow in the third quarter, driven by a number of factors, including platform policy changes, macroeconomic challenges and increased competition,” Snap said in a statement.
Snap’s management noted that revenue was up about 9% at the start of the fourth quarter and declined to give guidance for the quarter as a whole.
Papers Twitter Inc. fell by 4.2% on the information of the Bloomberg agency that the administration of US President Joe Biden is discussing the possibility of checking some of Elon Musk’s businesses for compliance with the interests of state security.
We are talking about Musk’s SpaceX company, as well as Twitter, which is being bought by a billionaire, informed sources told the agency. According to them, the White House is concerned about Musk’s recent statements about a possible withdrawal of funding for the Starlink satellite communications system for Ukraine, as well as a series of tweets suggesting his ways to resolve the Russian-Ukrainian war.
American Express slipped 4.7% despite the fact that the company, which is one of the leaders in the US plastic card market, recorded net income and revenue in the past quarter above market expectations.
Schlumberger shares rose 1.1% in pre-trade. The American oilfield services company increased its net profit in the third quarter by 1.6 times, revenue – by 28%.
The December E-mini futures for the S&P 500 fell 0.78% to 3646.5 points by 3:55 pm on Friday. The quote of the December E-mini futures on the Dow Jones index fell by this time by 0.7%, to 30,140 points. Futures on the Nasdaq 100 for December fell 1.25% to 10952.25 points.
