US STOCKS-S&P 500, Nasdaq futures fall, social media stocks lead the decline

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Futures: S&P down 0.26%, Nasdaq down 0.54%, Dow flat

July 22 (Reuters)S&P 500 and Nasdaq futures fell on Friday, with social media companies and companies that sell online ads leading declines after Snap Inc missed quarterly revenue targets.

Snapchat owner’s shares SNAP.N plunged 29.8% in premarket trading as it declined to make a forecast and said record inflation and growing competition hurt advertising demand.

Nasdaq Futures Contracts NQcv1 fell the most among its peers, with Meta Platforms Inc META.O and Alphabet Inc. GOOGL.O involved in online advertising technology, down 4.8% and 2.9%, respectively.

Twitter Inc. TWTR.N lost 2.1% before reporting quarterly results, while Meta and Alphabet were due to report earnings next week along with other big tech companies including Apple Inc. AAPL.OMicrosoft Corporation MSFT.O and Amazon.com Inc. AMZN.O.

Investors are bracing for the slowest-ever global revenue growth in the social media sector as intensified advertising competition from TikTok and Apple threatens to deepen economic woes in the second quarter.

Wall Street’s three major indexes are still set to end the week with their biggest gains in nearly a month, with growth stocks doing most of the heavy lifting after markets cheered quarterly reports from Tesla Inc. TSLA.O and Netflix Inc. NFLX.O.

The US Federal Reserve is expected to raise interest rates by 75 basis points next week to rein in runaway inflation, followed by second quarter US gross domestic product data, which is again expected to be negative.

Two quarters of negative GDP would mean the United States is in recession.

At 6:32 a.m. ET, Dow e-minis 1YMcv1 were down 2 points, or 0.01%, the S&P 500 e-minis ESCv1 were down 10.5 points, or 0.26%, and the Nasdaq 100 e-minis NQcv1 were down 68.25 points, or 0.54%.

Of the 91 S&P 500 companies that have reported earnings so far, 78% have exceeded expectations. Analysts now expect S&P 500 year-over-year earnings to rise 6.3% in the second quarter, down from the 6.8% estimate at the start of the three-month period, according to Refinitiv data. .

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)

(([email protected]; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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