Nasdaq futures edged lower on Friday after chipmaker Intel warned of lower profit margins, while Snap Inc led declines among social media firms after flagging a hit to digital advertising from privacy changes by Apple.
Intel Corp slid 10.3% in premarket trading as it missed third-quarter sales expectations, while its Chief Executive pointed to a shortage of other chips holding back sales of the company's flagship processors. Supply chain worries, inflationary pressures and labor shortages have been at the center of third-quarter earnings season, with analysts expecting S&P 500 earnings to rise 33.7% year-on-year, according to data from Refinitiv.
Some analysts, however, said such worries will only have a temporary impact on earnings from mega-cap technology and communications companies this reporting season. "Intel also produced less than stellar results. Shorting big-tech has been a good way to lose money in the past two years, and I expect only a temporary aberration," wrote Jeffrey Halley, senior market analyst, Asia Pacific at OANDA in a client note.
Facebook Inc fell 3.7%, while Twitter Inc lost 4.1% after Snap Inc said privacy changes by Apple Inc on iOS devices hurt the company's ability to target and measure its digital advertising. Snap plummeted 20.9% on the news and cast doubts over quarterly reports next week from Facebook and Twitter, social media firms that rely heavily on advertising revenue.
Apple rose 0.2%. Other growth stocks including Tesla Inc, Microsoft Corp and Netflix Inc also rose, limiting declines on Nasdaq 100 e-minis. At 6:47 a.m. ET, Dow e-minis were up 33 points, or 0.09%, S&P 500 e-minis were up 3.5 points, or 0.08%, and Nasdaq 100 e-minis were down 26.75 points, or 0.17%.
Mattel Inc jumped 8.2% after it raised its 2021 sales forecast on Thursday, saying it would overcome industry-wide shipping disruptions. Honeywell International Inc fell 2.1% after the industrial conglomerate cut its full-year sales and adjusted profit forecast on global supply chain disruptions.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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