The nervousness on the markets is high despite signs of recovery in the meantime.
(Photo: Reuters)
Frankfort, New York A record snap at Snap shocked investors on US stock markets on Tuesday. The Snapchat operator’s shares plummeted 37 percent after a profit warning, dragging other tech stocks down with it.
The Nasdaq index fell 2.4 percent to 11,256 points. The Dow Jones index of standard values fell 0.5 percent to 31,714 places. The broader S&P 500 lost 1.3 percent to 3922 points.
Snap’s lowered expectations for the current quarter are an indication of the deteriorating economy and advertising business, said analyst Brent Thill of investment bank Jefferies. Stocks of heavily advertising-dependent companies such as Twitter, Google parent Alphabet, Meta Platforms and Pinterest slipped between 2.8 and 17 percent.
“When the (economic) outlook is bleaker, advertising spending is reduced. This will put investors in a bad mood and create more storm clouds, just when many were hoping the market slump was about to bottom,” said investment expert Russ Mold of wealth manager AJ Bell.
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Individual values in focus:
Petco: Sales and earnings for the last quarter were better than expected. The pet products retailer’s stock is up 3.2 percent.
Abercrombie & Fitch: Abercrombie & Fitch shares plunge nearly 30 percent after the clothing retailer lowered its full-year sales outlook.
Island: The medical device maker is in talks to be acquired by Dexcom, a maker of glucose monitoring systems, according to Bloomberg. Insulet’s stock gains 7.2 percent, Dexcom falls by around nine percent.
AutoZone: The auto parts retailer’s earnings beat forecasts. Sales also showed an unexpected increase. The shares gained 2.6 percent.
Advance Auto Parts: The papers of Advanced Auto Parts fall by almost four percent. The auto parts retailer reported quarterly earnings and sales that fell short of forecasts.
More: Prices on US stock exchanges are likely to fall further: experts expect a second wave of sales