Morning Minutes

Social Media Stocks Slammed By Snap Selloff




Picking up where major retailers left off last week, social media stocks are getting crushed in premarket action this morning. The catalyst for this selloff was poor earnings from Snap, parent of Snapchat, which announced last night that sales and earnings would fall short of expectations, and hiring will be slowed. Snap is down 31.2% in premarket trading, while Pinterest is down 13.9% premarket and Meta Platforms is down 7.6%.

Earnings reports have also sparked significant premarket moves in other US stocks this morning. Highlights include a big beat from Zoom ($1.03 vs street $0.87, up 3.8% premarket), and a big miss from retailer Abercrombie (-$0.27 vs street +$0.08 down 27.8% premarket). This week brings earnings reports from the biggest Canadian banks and more US retailers, particularly clothing and specialty stores.

Monday’s market rebound, which picked up from Friday’s last hour rally and saw US indices gain 1.6% to 2.0% yesterday, has faded overnight and into this morning. US index futures are falling with NASDAQ futures down 1.8% and Dow futures down 0.7%. Over in Europe, the FTST is flat while the Dax is down 0.8%. Copper is down 1.8% while WTI crude oil is holding steady near $110.00 per barrel.

Flash PMI reports from around the world have been coming out overnight and into this morning. Overall, results have been in the low to mid 50s, indicating a moderately expanding world economy. Eurozone and UK results were a bit worse than expectations, while numbers from Australia and Japan were slightly above expectations. US flash Manufacturing (street 57.5 vs previous 59.2) and flash Service (street 55.2) PMI reports are due at 9:45 am EDT this morning.

New Video: SIA Wealth May Webinar Replay With Jeremy Fehr

A replay of SIA Wealth CEO, Jeremy Fehr’s recent presentation on the ongoing R&D advancements implemented into SIA Wealth’s Mutual Fund and ETF mandates over the past two years, which have helped SIA Wealth successfully manage the current volatile market environment, is now available.

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Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

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