Stock Futures Edge Lower Amid Disappointing Tech Guidance

The Friday Market Minute

  • U.S. futures down after stocks surged on Thursday
  • European markets mixed
  • Turkish lira falls back 3%

Market Snapshot

U.S. stocks market futures edged lower on Friday, Aug. 17, after disappointing earnings from some technology stocks 

S&P 500 futures were down 021% at 6:18 am EST and Dow Jones Industrial Average futures lost 0.18% after stocks surged on Thursday on hopes of the trade talks and after Walmart Inc. (WMT) topped earnings estimates and raised full-year guidance. The Dow Jones Industrial Average rose 397 points, or 1.58%, to 25,559, the S&P 500 gained 0.79% and the Nasdaq Composite added 0.42%.

The markets looked set to be pulled down by disappointing guidance from Nvidia Corp. (NVDA) and Applied Materials Materials Inc. (AMAT)

Nvidia slipped 3.81% in premarket trading after the chipmaker beat earnings and sales estimates for its fiscal second quarter, but issued weaker-than-expected third quarter guidance.

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Applied Materials saw shares drop 5.69% in premarket trading after the chipmaker issued weaker-than-expected guidance for the fourth quarter. 

Meanwhile, Nordstrom Inc. (JWN) surged 9.32% after it reported second-quarter earnings and sales that beat analysts' estimates and the retailer raised its fiscal-year guidance.

Tesla Inc. (TSLA) shares were down 1.37% in the premarket after CEO Elon Musk told the New York Times that his now infamous take private tweet wasn't reviewed by anyone and that the past year had been the "most difficult and painful year of his career."

European markets drifted lower in midday trading. The Stoxx 600 was down 0.28%. The market was being pushed up by AP Moeller-Maersk (AMKBY) , which saw shares up 3.73% after it said it would spin off its drilling rig business and list it in Copenhagen.

London's FTSE 100 lost 0.18%. Germany's DAX was down 0.42% and France's Cac 40 fell 0.25%.

Asian markets mostly ended a tough week higher on news of the fresh trade talks between the U.S. and China.

The meeting is set to take place as the world's two largest economies are due to slap tariffs on billions of dollars of each other's goods on Aug. 23, on top of those already levied on July 6.

The Nikkei ended the day 0.35% up and the Topix was up 0.62%. South Korea's Kopsi ended the day 0.28% and Hong Kong's Hang Seng gained 0.25%.

However, China's Shanghai Composite Index lost 1.34%, on course to close at a two-and-a-half year low. The index was dragged down by healthcare shares after officials were arrested over a vaccine scandal in the country. 

The Turkish lira slipped 3% to 6 per dollar, despite a recovery in recent days. The currency has lost a third of its value this year as relations between Turkey and the U.S. worsened. U.S. Treasury Secretary Steven Mnuchin said Turkey would face more sanctions if the country didn't release a detained American clergyman.

Late Wednesday, Qatar pledged to invest $15 billion in Turkey.