X Futures for the Dow Jones industrial average, S&P 500 and Nasdaq 100 edged lower early Friday. But the stock market has remained resilient despite political furor, retail meltdowns and other headwinds. Meanwhile, recent IPO Trade Desk (TTD) looked poised to gap up toward a buy point, akin to chipmaker Nvidia (NVDA), as opposed to Snapchat-operator Snap (SNAP).
The major averages retreated Thursday as Macy's (M) led a broad retail sector sell-off. The Dow industrials briefly fell below its 50-day moving average. But by the closing bell, the Dow industrials closed down just 0.1% while the S&P 500 index and Nasdaq composite fell 0.2%.
Dow futures fell 0.2% below fair value Friday morning. So did Nasdaq 100 futures. S&P 500 futures retreated 0.3%.
Snap
Snap crashed 21.45% to 18.05, hitting post-IPO lows after the Snapchat operator reported a wider-than-expected loss, lower-than-forecast revenue and sluggish user growth. It's clear that Facebook (FB) has blunted the upstart social network's growth by cloning many of Snapchat's most popular features. Facebook's Instagram now has more than 200 million users for Instagram Stories, more than Snapchat's total user base. Snapchat CEO and founder Evan Spiegel may laugh at Facebook's offerings, but investors probably aren't.
Snaps shares were indicated 1% higher in premarket action.
IBD'S TAKE: Snap never hit a proper buy point before Thursday's collapse. Before Snap began trading, IBD cautioned investors about how to play Snap and IPOs generally.
Trade Desk
After the market close, digital advertising platform Trade Desk, which came public at 18 last September, reported better-than-expected earnings and a 76% revenue gain. Trade Desk surged 21.6% before the opening bell to 48.52 after trading in recent days just above its 50-day moving average. That would be a record high and above a 46.31 buy point from a two-month consolidation.
Nvidia
Trade Desk, at least overnight, evokes the post-earnings reaction from AI and graphics chipmaker Nvidia. Nvidia reported blowout earnings late Tuesday. Nvidia, which was trading just above its 50-day line, soared 17.8% on Wednesday to 121.29, peeking past a 121.02 buy point and a new high. Nvidia followed up Thursday, with a 4.3% gain to 126.50. Nvidia dipped 1% in premarket trading Friday.
Overseas Markets
Japan's Nikkei fell 0.4% Friday. Australia's S&P/ASX 200 sank 0.7%. The Shanghai composite rose 0.7%.
In Europe, U.K. and German stocks rose 0.1% intraday while France's Cac-40 dipped 0.1%.
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