Tech Breakdown Sends Stock Futures Lower Once More

A profit warning from SNAP is weighing heavily on the tech sector

Digital Content Manager
May 24, 2022 at 9:15 AM
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Stock futures appear poised to resume their selloff today, as investors eye another breakdown in equities. A warning from social media giant Snap (SNAP) about missing its own current-quarter revenue and earnings targets is weighing on other key members of the tech space, and in turn, Nasdaq-100 Index (NDX) futures are looking at a triple-digit drop. Futures on the Dow Jones Industrial Average (DJIA),meanwhile, are set to erase a chunk of Monday's 618-point win, last seen down 174 points, while S&P 500 Index (SPX) futures follow suit. 

Continue reading for more on today's market, including:

  • Schaeffer's Senior Market Strategist Matthew Timpane unpacks the S&P 500's weekly losses
  • A look at Coinbase stock ahead of its shareholder meeting. 
  • Plus, AutoZone shares surprise sales growth; Zoom lifts profit outlook; and WOOF bounces on a profit beat.

futures may 24

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.26 million call contracts traded on Monday, and 738,181 put contracts. The single-session equity put/call ratio fell to 0.59, and the 21-day moving average stayed at 0.61.
  2. The shares of AutoZone, Inc. (NYSE:AZO) are down 0.5% in premarket trading, despite the car parts retailer posting fiscal third-quarter earnings and revenue that topped analysts' forecasts. AZO also posted unexpected same-store sales growth for the quarter. AZO has shed 11.7% this year, but still boasts a 24.6% year-over-year lead. 
  3. Zoom Video Communications Inc (NASDAQ:ZM) is 3.3% higher after the company reported a first-quarter earnings and revenue, as well as a raised profit outlook. Zoom said it's placing its focus on hybrid workplace models as people return to the office. ZM is trying to work off a 72.2% year-to-date deficit. 
  4. Petco Health and Wellness Company Inc (NASDAQ:WOOF) stock is up 6.1% ahead of the bell after the pet supply retailer shared a top- and bottom-line beat for its first quarter, and better-than-expected same-store sales. WOOF is still just two sessions removed from its all-time lows, and has lost 27.5% in the last six months. 
  5. Today's calendar will bring new home sales data, the manufacturing purchasing managers' index (PMI), and the services PMI. 

OV Buzz May 24

Biden's Tariff Comments Weigh on Asian Markets

Asian markets were sharply lower on Tuesday, as investors weighed U.S. President Joe Biden’s comments regarding easing tariffs on some Chinese imports. Still, China’s Shanghai Composite and Hong Kong’s Hang Seng shed 2.4% and 1.8%, respectively.  In terms of economic data, Japan’s manufacturing activity for May grew at its slowest pace in three months due to supply bottlenecks, with Toyota Motor set to cut June’s global production by roughly 100,000 as a result of the chip shortage. The U.S. also announced the Indo-Pacific Economic Framework, which includes Japan and South Korea, and will the establish digital economy, supply chains, and decarbonization regulations. Nonetheless, South Korea’s Kospi settled 1.6% lower, and Japan’s Nikkei dropped 0.9%.

European markets are also lower, as global markets continue to struggle with volatility. Investors are eyeing this week’s World Economic Forum in Davos, Switzerland, while analyzing May’s better-than-expected flash purchasing managers’ index (PMI) for the euro zone. At last check, the German DAX and France’s CAC 40 are both down 0.9%, while London’s FTSE 100 is down 0.2%.

 

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