Major Market Indexes End Mixed Tuesday After Snap Issues Q2 Revenue Warning

Last Updated: Tuesday, May 24, 2022 4:38 PM | MT Newswires

Major market indexes ended mixed Tuesday after Snap (SNAP) said it expects its second-quarter revenue to fall below the low end of its projected range.

The Dow Jones Industrial Average managed to exit negative territory and end 0.2% higher to 31,928.62 while the S&P 500 declined 0.8% to 3,941.48 and the tech-heavy Nasdaq Composite fell by 2.4% to 11,264.45.

Communication services, consumer discretionary, and technology bore the brunt of the intraday sell-off while consumer staples and utilities led the gainers.

The US 10-year yield plummeted by 10.1 basis points to 2.76% after reaching its lowest intraday level since mid-April earlier in the session.

West Texas Intermediate crude oil futures were down $0.51 to $109.78 a barrel.

Snap plummeted 43% after the Snapchat parent said in a filing it sees second-quarter sales falling below the low end of its projected range, citing a faster-than-anticipated deterioration of the macroeconomic environment. The downbeat forecast was "notable" since the firm offered initial guidance just a month earlier, with checks now pointing to incremental weakness in Europe, Oppenheimer said in a research note Tuesday.

Facebook and Instagram-owner Meta Platforms (FB) plunged 7.6%, among the worst performers on the Nasdaq 100 together with Chinese mobile platform Pinduoduo (PDD), which declined 8.6%.

In economic news, the flash manufacturing reading from S&P Global fell to 57.5 in May from 59.2 in April and the Richmond Fed's reading fell to negative 9 from positive 14 after regional data from the New York and Philadelphia Federal Reserve banks indicated a slowdown in the sector. Additional regional manufacturing data will be released before the ISM's national manufacturing reading on June 1.

The flash services reading from S&P Global declined to 53.5 in May from 55.6 in April, while the Philadelphia Fed's index fell to 23.4 from 29.3 and the Richmond Fed's index fell to 8 from 13, suggesting slower growth.

US new-home sales slowed to a 591,000 annual rate in April from a downwardly revised 709,000 rate in March, below the 749,000-rate expected in a survey compiled by Bloomberg.

Gold was up $17.50 to $1,871.40 per troy ounce and silver was up $13.34 to $1,866.93 per ounce. Among energy ETFs, the United States Oil Fund was little changed at $82.00, and the United States Natural Gas Fund was up 0.2% to $30.12.

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