Live stock market news updates: Stocks extend losses as volatile trading continues, Snap drags tech stocks lower

Live stock market news updates: Stocks extend losses as volatile trading continues, Snap drags tech stocks lower

US stocks fell on Tuesday, sending the S&P 500 back on track towards a bear market as a series of sharp selling resumed on Wall Street.

The S&P 500 Index is down 2.1%, and the Dow Jones Industrial Average is down 400 points, or 1.3%. The Nasdaq Composite Index is down 3.3% amid renewed pressure in technology following a disappointing outlook from social media platform Snap (SNAP) that sent the company’s shares down as much as 40%, putting it on track for its biggest one-day drop. registered.

The moves extend a flurry of volatility in stocks soon after on Monday but build on a broader downtrend amid months of selling on Wall Street. Monday’s close was only the 13th out of 98 trading days this year that the S&P 500 index closed in positive territory, according to data from Bespoke Investment Group.

The decline in stocks on Tuesday was driven by pressure in technology shares after the CEO of Snap Inc. Evan Spiegel forecasts the company, citing rising inflation and interest rates, supply chain restrictions and employment disruptions. Meta Platforms (FB) shares followed the losses in Snap, dropping 10%, and Alphabet (GOOG) shares shedding 7%.

The social media giant is the latest among a growing agenda of US companies that have lowered their forecasts over concerns that macroeconomic pressures could weigh on margins. Last week, a batch of disappointing earnings from major retailers confirmed concerns that inflation and ongoing supply chain issues are affecting companies’ balance sheets.

“It was inevitable that there would be some payback from the pandemic-induced dividend so many companies saw, but that payoff may be greater than originally thought,” Brian Jacobsen, chief investment analyst at Allspring Global Investments said in an email note. “. “Businesses have to deal with rising input costs, consumers bogged down by higher prices, and changing spending patterns.”

During the first-quarter earnings season, 338 of the 460 companies in the S&P 500 that have reported results so far referred to the term “supply chain” during calls with investors — the third-highest number since at least 2010, according to research from FactSet. With results released this week from consumer names including Macy’s (M), Dick’s Sporting Goods (DKS) and Ulta Beauty (ULTA), Wall Street is bracing for more bad news.

There’s also a batch of economic data on hold for investors until Friday, with a second estimate of US first-quarter GDP later this week, along with a new reading of monthly personal consumption expenditures (PCE), the Federal Reserve’s preferred inflation benchmark. .

10:58AM ET: New home sales are at their lowest level since early 2020

Sales of new US homes fell by the most in nearly nine years to their lowest level since the start of the COVID-19 pandemic. This drop comes in light of rising construction costs and rising mortgage rates weighing on affordability.

New home sales in the United States fell 16.6% month over month to a seasonally adjusted annual rate of 591,000 in April of 2022. This figure represents the lowest reading in two years and comes less than the forecast of 750,000 economists polled by Bloomberg.

The pace of sales in March was also revised down to 709,000 units from the previously reported 763,000 units.

“The macroeconomic environment has deteriorated faster than we thought just a month ago with new home sales plunging under the weight of rising financing costs and home appraisals as gas homebuyers cost in the car to tour new homes,” said Christopher Robke, chief economist at FWDBONDS at note.

9:34 a.m. ET: Stocks resume losses as sharp selling continues on Wall Street

Here are the main moves in the markets in early trading on Tuesday:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): -40.20 (-1.01%) to 3,933.55

  • dow (^ DJI): -141.29 (-0.44%) to 31738.95

  • Nasdaq (^ ninth): -209.61 (-1.82%) to 11,325.66

  • raw (CL = F.):- $0.20 (-0.18%) to $110.09 per barrel

  • He went (GC = F.): + $11.50 (+0.62%) to $1,859.30 an ounce

  • Treasury for 10 years (^ degeneration): -4.9 basis points to produce 2.8100%

8:30 a.m. ET: Abercrombie shares drop after earnings

Shares of Abercrombie & Fitch (ANF) fell as much as 25% in premarket trading after the company cut its full-year forecast in its latest quarterly report.

For the full year of 2022, the company now expects sales growth to fall within a steady range to just 2%, down from a previous forecast of 2%-4% sales growth. In downgrading its forecast, the company cited the “negative foreign currency and assumed inflationary impact on consumer demand.”

After increasing sales by 4% during the first quarter, ANF expects second-quarter sales to decline in “low single digits” compared to a year earlier. The company attributed the decline to the impact of the COVID-related lockdowns in China as well as the negative impact of inflation on consumer habits.

“Looking forward, we expect higher costs to remain a headwind at least through the end of the year,” CEO Fran Horowitz said in the company’s earnings statement.

“We expect the freight burden to be eased in the fourth quarter with increased air usage last year due to the Vietnam shutdown. We will continue to tightly manage expenses and are committed to creating opportunities to offset these costs while protecting strategic investments in marketing, technology and our customer experience, which should lead to long-term, sustainable sales growth. term.”

7:17AM ET: Futures point to continued losses after Snap cut its forecast

Here is where the stock futures were in pre-market trading on Tuesday:

  • S&P 500 futures contracts (ES = F.): -41.00 (-1.03%) to 3930.75

  • Dow futures contractsYM = F.): -200.00 (-0.63%) to 31,639.00

  • Nasdaq futures contractsNQ = F.): -195.50 (-1.62%) to 11,839.75

  • raw (CL = F.): + $0.41 (+0.37%) to $110.70

  • He went (GC = F.): + $8.50 (+0.46%) to $1,856.30 per ounce

  • Treasury for 10 years (^ degeneration): +7.2 basis points to produce 2.8590%

NEW YORK, NY – MAY 23: People walk near the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of sharp losses, the markets rose in Monday morning trading. (Photo by Spencer Platt/Getty Images)

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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2022-05-24 13:35:15

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