US markets are setting up for a mixed open on Tuesday with the Dow Jones building on a 200 point reversal seen the prior day, while the Nasdaq is still reeling from the disarray caused by the early release of weak Twitter (NYSE:TWTR) earnings.
Twitter lost as much as a quarter of its value in just one hour of trading with bulls getting caught flat-footed when a data-mining company, Selerity plucked the results off Twitter’s investor relations page. The surprise-factor, revenues below estimates as well as a lower guidance sent shares drastically lower. Twitter’s lower guidance undoes excitement over the latest product upgrades and could lead to further losses in the shares over the coming weeks.
In more favourable news for tech shares, GoPro Inc (NASDAQ:GPRO) is expected to see a higher open after the company reported solid earnings and guided higher alongside news it has bought a virtual reality firm.
Casino shares weren’t faring too well with Wynn Resorts Limited (NASDAQ:WYNN), MGM Resorts International (NYSE:MGM) and Las Vegas Sands Corp (NYSE:LVS) all falling on Tuesday and afterhours with a downturn in business in the Chinese gambling resort of Macau reflecting the slowdown in China’s economy.
The US economy and Fed policy will be front and centre for trading on US markets on Wednesday. GDP growth is expected to slow considerably to 1% in the first quarter. The weak data could prove to be a positive if the statement of the Federal Reserve leaves investors expecting a delay to the first rate hike.
Futures suggest the:
S&P 500 will open 1 point higher at 2,115 with the
Dow Jones expected to open 9 points higher at 18,119 and the
Nasdaq 100 4 points lower at 4,511.
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