Twitter – Snap, Twitter, Facebook, TAL Education: What to Watch When the Stock Market Opens Today
Futures are up, putting major indexes on track for weekly gains with large technology stocks driving the rally. Here’s what we’re watching ahead of Friday’s action.
- Why hello there, social-media stocks. Snap shares were leading the pack premarket, jumping 17% after the company’s revenue more than doubled in the second quarter and user growth jumped the most in four years. It seems that usage of the app is proving sticky even as people spend more time outside their homes.
- Other big social-media names were rising too. Twitter was up 6% premarket after it said it added 7 million more daily active users from the previous quarter and its revenue increased 74%. Sector giant Facebook was riding the coattails of its peers with a 2.8% premarket gain, and Pinterest added 4.2%.
- But not everyone is celebrating on a generally bullish day. Intel Chief Executive Pat Gelsinger said he sees the global semiconductor shortage potentially stretching into 2023, adding a leading industry voice to the growing view that the chip-supply disruptions won’t wane soon. Its shares slipped 1.7% premarket.
- Concerns about a Chinese government crackdown on after-school tutoring are hammering U.S.-traded shares of New Oriental Education & Technology and rival TAL Education Group . Bloomberg reported that China is considering asking the companies to become non-profits. TAL shares plunged 51% premarket, and New Oriental Education & Technology sank 45%.
- Some meme stock favorites were also bucking the otherwise good mood. AMC Entertainment was down 1.3% ahead of the bell. GameStop edged down 0.7% and Koss slid 2.6%.
- Domino’s Pizza was down more than 1% premarket, giving back just a touch of Thursday’s 15% surge that came after its earnings that beat estimates and it disclosed a new share-repurchase program.
- Honeywell shares added 0.5% after the industrial giant beat expectations for the second quarter and lifted its guidance.
- American Express jumped 3.5% premarket after it reported higher second-quarter revenue and increased earnings as spending on travel and entertainment kept improving, and the company logged credit-reserve releases.
- Kimberly-Clark is due to report earnings Friday.
Chart of the Day
- The searing market for newly public companies has a new obsession: grills.