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Snap, Twitter, Intel, Honeywell, American Express - 5 Things You Must Know Friday

Earnings optimism lifts the three benchmark indexes to near all-time highs; Snap soars as user growth jumps; Twitter beats sales estimates; Intel CEO says chip shortage could persist until 2023.

Here are five things you must know for Friday, July 23:

1. -- Stock Futures Rise Amid Earnings Optimism

Stock futures traded higher Friday as earnings optimism lifted the three benchmark U.S. indexes to near all-time highs.

Contracts linked to the Dow Jones Industrial Average rose 166 points, S&P 500 futures were up 18 points and Nasdaq futures advanced 51 points. Stocks were on track for weekly gains.

Better-than-expected results from Twitter  (TWTR) - Get Twitter, Inc. Report and Snap  (SNAP) - Get Snap, Inc. Class A Report lifted other social media names and tech stocks in general.

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The yield on the benchmark 10-year Treasury rose early Friday to 1.296%, recovering from lows earlier in the week.

Stocks finished modestly higher Thursday as strong corporate earnings outweighed a surprising jump in U.S. unemployment claims. Sales of previously owned homes rose for the first time in five months.

While enthusiastic about the economic recovery, investors remained nervous about the spread of the delta variant of COVID-19 through unvaccinated populations and what disruptions it potentially may cause.

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The Summer Olympics officially begin Friday in Tokyo but without spectators because of coronavirus restrictions.

2. -- Friday's Calendar: Honeywell and American Express Earnings

Honeywell International  (HON) - Get Honeywell International Inc. (HON) Report earned $2.02 a share on an adjusted basis in the second quarter, higher than analysts' estimates of $1.94.

American Express  (AXP) - Get American Express Company Report earned $2.80 a share in the second quarter, well ahead of forecasts of $1.63.

Honeywell is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.

The economic calendar in the U.S. Friday includes the PMI Composite Flash for July at 9:45 a.m. ET.

3. -- Snap Soars as Second-Quarter User Growth Jumps 

Snap  (SNAP) - Get Snap, Inc. Class A Report soared in premarket trading Friday after user growth during the company's second quarter jumped the most in four years.

Revenue at the parent of mobile app Snapchat more than doubled to $982.1 million, easily beating analysts' estimates of $846 million.

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Snapchat had 293 million daily active users in the second quarter, which also beat
analysts’ expectations. The company added 13 million daily average users during the three months ended in June.

Snap has been a beneficiary of people being stuck at home during the COVID-19 pandemic.

The company “benefited from a favorable operating environment and continued success with both direct response and large brand advertisers,” Chief Business Officer Jeremi Gorman said during Snap’s post-earnings conference call.

The stock rose 16.72% to $73.50 in premarket trading Friday. It has gained nearly 26% year to date.

4. -- Twitter Rises as Sales and Forecast Top Estimates

Shares of Twitter  (TWTR) - Get Twitter, Inc. Report were rising early Friday after second-quarter sales at the social-networking platform beat estimates and its third-quarter outlook topped forecasts.

The stock rose 5.4% to $73.33 in premarket trading.

Twitter reported a 74% jump in second-quarter sales to $1.19 billion, exceeding analysts' estimates of $1.1 billion. Ad revenue jumped 87%.

The company said it added 7 million new users in the second quarter, boosting its total to 206 million daily users. Twitter's U.S. user count of 37 million fell by 1 million in the quarter and missed estimates.

The San Francisco company said it expects third-quarter revenue of $1.22 billion to $1.3 billion, higher than Wall Street expectations of $1.17 billion.

5. -- Intel Issues Lukewarm Outlook, Says Chip Shortage Could Persist Until 2023 

Intel  (INTC) - Get Intel Corporation (INTC) Report issued a third-quarter sales outlook that failed to excite investors while CEO Pat Gelsinger said the global chip shortage could extend into 2023.

Shares of the world’s biggest semiconductor maker slumped in premarket trading, falling 1.8% to $54.95.

The chip company said it expects sales in the third quarter of about $18.2 billion vs. analysts' estimates of $18.1 billion.

Intel said it expects adjusted earnings in the third quarter of $1.10 a share. Adjusted gross margin was forecast at about 55%.

Gelsinger said on a conference call that the shortage of semiconductors across many parts of the electronics industry will bottom out in the second half of the year but it could take "another one to two years before the industry is able to completely catch up with demand."

Intel reported second-quarter earnings of $1.28 a share, compared with $1.14 a share a year earlier. Revenue rose 2% to $18.5 billion.

Analysts were expecting earnings of $1.07 a share on revenue of $17.8 billion.