A professional trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City, October 6, 2021.
Brendan McDermid | Reuters
Nasdaq 100 futures fell in overnight trading on Thursday after disappointing earnings reports from technology companies.
Nasdaq 100 futures were down 0.5 percent. Dow Jones Industrial Average futures fell 25 points. S&P 500 futures were down 0.3%.
Intel shares fell more than 8% hours after the release of a weaker-than-expected sales report. The semiconductor company blamed an industry-wide chip shortage for its lost revenue.
Social media shares also fell in extended trading after Snap said its advertising business was sluggish due to Apple’s privacy changes. Snap shares are down more than 22% while both Facebook and Twitter are down more than 4% after hours.
On Thursday’s regular session, the S&P 500 made a new intraday high and a new record close. The general index rose 0.3 percent for its seventh consecutive positive session. The Nasdaq Composite Index rose 0.6%, while the Dow Jones fell 6.26 points, or 0.02%.
Investors absorbed a large number of corporate earnings reports. Tesla shares closed 3% higher on Thursday, lending support to the S&P 500 and Nadaq Composite.
Companies are posting solid earnings so far this third quarter reporting season despite supply chain and inflation headwinds. Of the 101 S&P 500 members who report financial results, 82.6% have beat earnings expectations, according to FactSet as of Thursday after the bell.
“In a quarter where we thought things were going to slow and there was concern about what profit margins would look like, these companies are still doing well,” said Victoria Fernandez, chief market strategist at Crossmark Global Investments.
The strong jobs data also added to the positive market sentiment. The Labor Department reported Thursday that initial jobless claims fell to a new epidemic level of 290,000 last week — down 6,000 from the previous week and less than the 300,000 expected from economists surveyed by Dow Jones.
All three major averages are on track to close the week higher in three consecutive weeks of gains. In the month, all three indices rose by at least 5%.
Investors are awaiting earnings reports on Friday from companies including American Express, Honeywell, Schlumberger and Cleveland-Cliffs.