U.S. stock futures were little changed on Tuesday morning as investors continued to digest earnings reports out from dozens of blue-chip heavyweights. Amidst mixed results, Snap Inc. experienced a significant decline after its revenue fell short of expectations for the second quarter.
Snap’s revenue came in at $1.34 billion. That figure was slightly below the analysts’ consensus forecast of $1.35 billion, based on a poll by LSEG. Consequently, shares of Snap tanked 14%, as investors expressed their displeasure of the current state Snap’s business to the company.
Electric-vehicle maker Rivian Automotive has been battered in recent weeks. That’s why its stock plummeted over 3% on Tuesday after the company reported a mixed bag of second quarter results last week. Given the automaker’s under-performance, especially in the high stakes EV market, investor alarm became a factor leading to its fall.
Skyworks Solutions had a strong showing as its stock jumped 9%. This spike came on the heels of the company’s announcement of better-than-expected earnings for their third fiscal quarter. The company announced very good adjusted earnings of $1.33 per share, on revenue of $965 million. This outcome was up from originally projected revenue of $1.28 billion. This performance was well ahead of analysts’ expectations and helped reassure investors that the company was back on track after several misfires.
Markets don’t move in a straight line. Senior market strategist Keith Lerner said the market was feeling mixed emotions. That said, overall I still believe the underlying trend is a positive one,” he said.
As investors continue to weigh inflation worries against positive corporate earnings, a number of high-profile companies are scheduled to release their corporate earnings in the coming days. Disney, Uber and McDonald’s are all reporting earnings before the market opens on Wednesday. In the first week after the market closes, Airbnb, DoorDash and Lyft will report.
The earnings reports slated by these big cap names are likely to set the tone for market direction and investor focus in the weeks ahead.