Futures have risen, putting major indices on track for weekly gains, with big technology stocks driving the rally. We’ll see that before the action on Friday.
- Why hello, social media stocks. Snap stocks led the pack premarket, rising 17% after the company’s revenue more than doubled in the second quarter and user growth rose the most in the past four years. It seems that the app is proving difficult to use even when people spend more time outside their home.
- Other big social media names also rose. Twitter rose 4.9% ahead of the market after it said it added 7 million more daily active users and its revenue increased 74% compared to the previous quarter. Industry giant Facebook rode on its competitors’ rocktails with a 2.9% gain before launch, and Pinterest added 4.3%.
- New York-listed TAL Education Group shares fell 59% ahead of the IPO as the Chinese government feared the Chinese government could crack down on the for-profit education sector, especially after-school tutoring. An unchecked document circulated among investors and viewed by the Wall Street Journal appeared to be an official notice outlining new, stricter guidelines for the sector. Jefferies analysts say investors have become more concerned about the prospect for after-school tutoring for 10th-12th grades and fear that such tutoring may have to be done on a nonprofit basis. The New Oriental Education Group and 17 Education & Technology Group also fell 64% and 41%, respectively.
- Intel CEO Pat Gelsinger said he sees global semiconductor shortages potentially well into 2023, adding an industry leading voice to growing belief that chip supply disruptions are not going to abate anytime soon. The Intel share lost 2.8% in the pre-trading session.
- Favorite meme stocks showed mixed performance. AMC Entertainment was up 1% before the bell. GameStop rose 0.9% and Koss lost 2.1%.
- Domino’s Pizza was down more than 0.9% ahead of market price, reflecting just a tinge of Thursday’s 15% rise that came after its above-estimate earnings and the release of a new share buyback program.
- Honeywell stock was down 1.8% after the industry giant beat expectations for the second quarter and raised its forecast.
- American Express was up 4.6% pre-launch after reporting higher second quarter revenues and higher profits as travel and entertainment spending continued to improve and the company released reserve credit.
- Kimberly-Clark lost 3.9% after the manufacturer lowered its guidance for the full year due to higher input costs and lower sales volumes.
Chart of the day
- The keen market for newly listed companies has a new obsession: barbecues.