US pre-open: Stocks seen down as Snap, Twitter plunge
US stock futures pointed to a weaker open on Wall Street on Friday, with sentiment dented by a disappointing update from Snapchat owner Snap and Twitter under the cosh amid reports of a potential security review.
At 1030 BST, Dow Jones Industrial Average futures were down 0.7%, while S&P 500 and Nasdaq futures were 0.7% and 1.1% lower, respectively.
James Hughes at Scope Markets said: "Those early gains on Wall Street yesterday proved to be short lived, with another round of hawkish notes from the Fed pouring cold water on any attempted rebound for equities.
"That was reinforced by the publication of better-than-expected weekly jobs data and with a quiet day ahead in terms of scheduled macroeconomic releases, downside pressures could persist for a while, yet.
"Earnings season continues - the potential read-across from Snap’s disappointing numbers last night could weigh on the wider media and tech sectors - whilst during the day ahead, highlights are set to include American Express and Verizon.
"The former appears to be performing well, but there are concerns that a worsening economic outlook could take a toll in the new year."
On the corporate front, Snap Inc slid 26% in pre-market trade after it posted lower-than-expected third-quarter revenue late on Thursday and warned of an inflation hit to ad spending.
Elsewhere, Twitter shares tumbled nearly 10% in pre-market trade following a report that Biden administration officials are discussing whether the US should subject some of Elon Musk’s ventures to national security reviews. Bloomberg cited people familiar with the matter as saying that this would include the deal for Twitter and SpaceX’s Starlink satellite network.
According to Bloomberg, US officials are concerned by Musk’s plans to buy Twitter with a group of foreign investors.