Nasdaq futures drop as Facebook leads tech shares lower

Finance

Traders on the floor of the NYSE, Jan. 26, 2022.
Source: NYSE

Nasdaq 100 and S&P 500 futures fell Wednesday night, as traders pored through the latest batch of corporate earnings, which included disappointing numbers from tech giant Meta Platforms.

Futures tied to the Nasdaq 100 dropped 1.8%, and S&P 500 futures slid 0.7%. Dow Jones Industrial Average futures rose 68 points, or 0.2%, however.

Shares of Facebook-parent Meta Platforms plunged more than 20% in after-hours trading after the company’s quarterly profit fell short of expectations. The company also issued weaker-than-expected revenue guidance for the current quarter.

“There was a lot to not like” from Meta’s report, Metropolitan Capital Advisors CEO Karen Finerman told CNBC’s “Fast Money.” She noted that the company’s revenue growth expectations were the “spookiest” part of the release.

However, Finerman added that the move down seems a “little overdone.”

Other social media names, including Snap and Twitter, followed Facebook shares lower. Snap shares slid 17.4% after the bell, and Twitter dropped more than 8%.

Spotify Technology, meanwhile, fell about 11% after the company’s latest quarterly figures showed a slowdown in premium subscriber growth.

Wednesday night’s moves come after the major averages notched a four-day winning streak during the regular session.

The Dow jumped more than 200 points on the day, while the S&P 500 and Nasdaq Composite advanced 0.9% and 0.5%, respectively. Those gains were driven by a jump in tech shares, which were led by a 7.3% rally in Alphabet shares.

That four-day jump has helped the major averages trim some of their steep losses after a downbeat January. Last month’s declines came as traders braced for potential rate hikes from the Federal Reserve.

“It’s been a crazy, volatile environment, which is what happens when you’re in this transition period of monetary policy and economic growth,” Canaccord’s Tony Dwyer told CNBC’s “Closing Bell.”

On the economic data front, investors will keep an eye out for the latest weekly U.S. jobless claims numbers. Economists polled by Dow Jones expect initial claims to have fallen to 245,000 from 260,000.

Those numbers will follow the release of surprisingly downbeat private payrolls data. ADP said Wednesday that U.S. private payrolls dropped by 301,000 in January, while economists polled by Dow Jones had forecast a gain of 200,000.

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