S&P 500 futures rise slightly as investors look past disappointing tech earnings, Meta shares crater
Futures tied to the S&P 500 rose slightly on Thursday, as investors seemed to brush off disappointing results from Meta Platforms.
S&P 500 futures traded about 0.1% higher, while Dow Jones Industrial Average futures climbed 227 points, or 0.7%. Nasdaq 100 futures dipped 0.5%.
Shares of the Facebook parent company plummeted 20% in premarket trading on a weak fourth-quarter forecast and disappointing third-quarter earnings. The company also said it would lose even more money next year building out the metaverse. The report led to several analysts downgrading the stock.
Traders also pored over earnings reports from other companies. ServiceNow surged more than 12% after an earnings beat. Ford Motor, meanwhile, dipped 2% after the company posted its latest results.
Stocks are coming off a mixed session, with the S&P 500 and Nasdaq Composite falling for the first time in four days on Wednesday, while the Dow ended the day marginally higher.
For the week, all the major averages remain in positive territory, with the Dow and S&P up more than 2% and Nasdaq roughly 1% higher. The Dow is on pace for its fourth positive week in a row since its five-week streak ended in November 2021.
“Investors are still struggling for direction and want clarity with respect to earnings and what the Fed will do going forward,” said Adam Sarhan, CEO of 50 Park Investments. “Remember, the market is a forward-looking mechanism and the earnings reports tell us what happened in the past. Investors want clarity and certainty. Right now, we still have a lot of uncertainty on multiple levels.”
Comcast and McDonald’s shares are up 8% and 2.9%, respectively, following earnings reports that beat expectations before the bell. Big technology earnings continue Thursday with results from Amazon and Apple.
Along with earnings, investors have their sights on an advanced reading of third-quarter gross domestic product expected to offer further clues into the state of the U.S. economy.
Weekly initial jobless claims and September durable goods are also slated for Thursday.
