Weak open ahead for Wall Street as attention turns to social media stocks


Futures point to a negative open

U.S. stock markets look likely to open lower on Friday, a day after all three major indices hit their highest level in six weeks.

As of 5 a.m. ET, futures tied to the blue-chip Dow were marked 26 points lower 31,981. S&P 500 futures lost 12.75 points, or 0.32% to 3,988.5 while the tech-heavy Nasdaq 100 futures 72.25 points, or 0.57% to 12,567.75.

Stocks had a positive session on Thursday, buoyed by Tesla (TSLA)’S upbeat second-quarter earnings.

The Dow Jones Industrial Average advanced 0.5% to close the session at 32,036.90. The S&P 500 rose nearly 1% to finish at 3,998.95 while the Nasdaq Composite gained 1.36% to end at 12,059.61.

Twitter shares slide ahead of Q2 earnings

Meanwhile, Twitter (TWTR) shares were trading lower in the premarket trading session Friday, as the company prepares to release its second-quarter financial results.

Analysts expect the company to report earnings of 14 cents per share on revenue of $1.32 billion before the opening bell.

Twitter’s earnings come at a time when the company is preparing for an October trial against Elon Musk. The social media company is suing him for walking away from an agreed $44 billion takeover deal.

Twitter stock dropped 2.58% to $38.50 a share in premarket hours.

Snap craters on disappointing earnings

Still on earnings, shares of Snap (SNAP) sank sharply lower in premarket trade after the company reported weaker-than-expected Q2 results and declined to provide a guidance for the current quarter.

The Snapchat owner said late Thursday that it had a net loss of $422.1 million, or 26 cents a share in the second quarter, up from a loss of $151.7 million, or 10 cents in the same period last year.

Excluding certain items, Snap had a net loss of 2 cents a share. Revenue came in at $1.11 billion, up 13% from a year ago.

Analysts expected the company to report a loss of 1 cent per share on revenue of $1.14 billion.

Snap did not provide financial guidance for the third quarter, citing “uncertainties related to the operating environment.”

Snap stock plunged 29.85% to $11.47 a share in premarket trade.