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Stock Market Today: Dow in Comeback After Snap Crackles on Profit Warning

Stock Markets May 24, 2022 04:29PM ET
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© Reuters

By Yasin Ebrahim

Investing.com -- The Dow fought its way back from a more than 500-point decline intraday Tuesday, after the biggest one-day rout in Snap put tech stocks back in the firing line. 

The Dow Jones Industrial Average gained 0.2%, or 48 points, the Nasdaq was down 2.4%, and the S&P 500 fell 0.60%.

Snap (NYSE:SNAP) fell more than 43% after the social media company cut its guidance on revenue and profitability, citing a faster-than-anticipated deterioration of the macroeconomic environment.

The warning from Snap “will sound the alarms on the deteriorating macro's evolving effects on digital advertising,” RBC said in a note after slashing its price target on the stock to $17 from $25.

Concerns about a weaker backdrop of advertising spending sent shockwaves throughout social media stocks. Meta Platforms (NASDAQ:FB) fell more than 7%, Twitter (NYSE:TWTR) was down more than 5%, while Pinterest (NYSE:PINS) slumped more than 23%.

Zoom Video Communications (NASDAQ:ZM), meanwhile, sidestepped the selling after the software company reported better-than-expected quarterly results and raised its annual guidance, sending its shares up more than 5%.

Elsewhere on the earnings front, companies continued to flag the impact of inflation and worries about the growth outlook.

Abercrombie & Fitch (NYSE:ANF) plunged more than 28% as the retailer cut its sales outlook for the year after reporting a surprise first-quarter loss owing to rising transportation and product costs.

AutoZone (NYSE:AZO) rose more than 5% following better-than-expected quarterly results.

Homebuilders were also adding pressure to the broader market on data showing new home sales fell to the lowest level since April 2020 as mortgages hover at their highest levels since 2009.

“The Federal Reserve is pumping the brakes; the most interest-rate sensitive sectors, notably housing, are cooling,” Grant Thornton said in a note.

Toll Brothers (NYSE:TOL), which reports quarterly results after the market closes Tuesday, fell more than 4%, Lennar (NYSE:LEN) and KB Home (NYSE:KBH) were also in the red.

Stock Market Today: Dow in Comeback After Snap Crackles on Profit Warning
 

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Comments (10)
Meru Pet
Meru Pet May 24, 2022 9:16PM ET
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increase oil production and stop to annoy people with these rates. historically they have been increased too fast...
Todd Gray
Todd Gray May 24, 2022 8:29PM ET
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the news hypes everything because people are gullible. if people learned how to not be gullible, the news could not get away with hype. one or the other has to change. when that happens, we will live in a stable society, again.
Minh Vo
Minh Vo May 24, 2022 7:17PM ET
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Wall street just uses Snap to push market down, simple
Gustavo Gomez
Gustavo Gomez May 24, 2022 6:51PM ET
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Snap making economic predictons? Really? Who uses snap anyway? Next economic forecast will be from GME or AMC …
Elvis Durant
Elvis Durant May 24, 2022 6:09PM ET
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ha! unbelievable
Jack Peterson
Jack Peterson May 24, 2022 6:06PM ET
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More of the dog and pony show… selling rumors… tread litely my friends..
Mitchel Pioneer
Mitchel Pioneer May 24, 2022 5:40PM ET
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Wall Street steps up the flagrant, criminal manipulation of the US Ponzi Scheme, and executes another fraudulent, intraday "recovery" in broad daylight.  1,000 points in losses between today and Friday, via the same criminal pattern.  Charles Ponzi would cry tears of joy if he could see the ultimate incarnation of his work in action.  BIGGEST INVESTMENT JOKE IN THE WORLD.
Dani Gonzalez
Dani Gonzalez May 24, 2022 5:15PM ET
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what's going on with this market
Mike Jarvis
Mike Jarvis May 24, 2022 5:06PM ET
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One day of gain a week. Better odds at Russian roulette!!!!
Casador Del Oso
Casador Del Oso May 24, 2022 4:47PM ET
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Is this for real?
 
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