Will Facebook’s Earnings Dud Spoil the Rally?

by | Feb 3, 2022 | Stock Market Sectors

The Nasdaq is poised to open down almost 300 points following dismal earnings from Facebook parent company Meta Platforms — and more in Thursday’s stock market recap.

Meta Platforms Inc. (FB) dropped $71 per share, down a total of 23%, as the company missed on earnings, revenue, daily and monthly active users, and revenue per user.

The company cited inflation and supply chain disruptions as causes, saying users are increasingly choosing more affordable products, ones that “monetize at lower rates.”

We’re already seeing some volatility in the Nasdaq as a result, with it down over 2%. 

Meta’s drop is already priced in, so we’ll look to see if the Nasdaq can move higher today.  

In this morning’s stock market recap video, you’ll learn whether energy has more upside… whether bonds will continue with choppy action or break out… the No. 1 sector investors need to have in their portfolios… a look into market internals and volatility levels… an update on the most logical directional bias for the market… plus my No. 1 sector play.

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P.S. Let Wall Street Do the Heavy Lifting

Hedge funds and large institutions test out new stocks they want to add to their portfolios at the start of each month. They’re moving mountains of cash into new stocks, buying in chunks to test price sensitivity.

As they enter, the stocks are poised to gain momentum through the rest of the month. So when these moves pop up on my scanner… Joy of the Trade Head Trader Jeff Zananiri rides these babies all the way to the end of the month for gains like 105%… 201%… and even 423%!

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Stock Market Recap: By the Numbers

This morning’s stock market futures recap:

DOW (mini)

  • Close: 35,629.33.
  • Futures: 35,380.
  • Change: -110.

S&P 500 (mini)

  • Close: 4,589.38.
  • Futures: 4,516.75.
  • Change: -60.25.

NASDAQ (mini)

  • Close: 15,139.74.
  • Futures: 14,715.
  • Change: -403.5.

RUSSELL (mini)

  • Close: 2,029.52.
  • Futures: 2,001.7.
  • Change: -23.6.

Note: Updated as of 9:25 a.m. EST 

Each Thursday, I’ll combine two of my favorite things into a big-money opportunity: options plays and ETFs. Using options, we can turn momentum analysis of a specific sector — or even an entire country’s stock market — into an actionable trade with double- or triple-digit upside potential. I’ll give you all the details you need to execute this plan.

Need help understanding some basics that we discuss frequently? Check out some of our educational pieces to help get yourself up to speed! Have a question or a topic you’d like us to explain in a future article? Send your thoughts to support@marketgeeks.com!

Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

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