Nasdaq Composite Index: -1.82% or -209.61 points to 11,325.66
Stocks were mostly lower on Tuesday after social media company Snap (NYSE: SNAP) posted its biggest one-day drop ever and pulled other social media stocks lower. While the Dow Jones Industrial Average added 50 points, the S&P 500 and Nasdaq Composite fell 0.80% and 2.4%, respectively.
Here's how the market settled on Tuesday:
S&P 500 Index (NYSE: SPY): -0.80% or -31.78 points to 3,941.97
Dow Jones Industrial Average (NYSE: DIA): +0.16% or +50.82 points to 31,931.06
Nasdaq Composite Index (NASDAQ: QQQ): -2.35% or -270.83 points to 11,264.45
Snap shares headed towards worst day ever after 'macroeconomic environment' warning:
Snap shares dropped 43% on Tuesday, pulling the company down to its worst day ever and impacting shares of other social media companies, after the company warned it won't meet its own targets for revenue and adjusted earnings in the current quarter.
"Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated," Snap said in a filing with the U.S. Securities and Exchange Commission (SEC). "As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range."
These comments impacted peers that rely on ad revenues, including Meta Platforms (NASDAQ: FB), Alphabet (NASDAQ: GOOG), Pinterest (NASDAQ: PINS), and Twitter (NYSE: TWTR). Snap's warning also impacted the ad tech industry, with companies including Trade Desk (NASDAQ: TTD) and PubMatic (NASDAQ: PUBM) also lower on Tuesday.
Snap shares are down over 80% from its 52-week high reached back in September and 70% lower for its year-to-date.
New home sales fall to lowest point since pandemic:
Sales of new U.S. homes fell to the lowest print since the start of the coronavirus pandemic, as rising construction costs and mortgage rate squeeze more would-be buyers out of the market.
New home sales sunk 16.6% month-over-month to a seasonally adjusted annual rate of 591,000 units in April, according to the National Association of Home Builders report published Tuesday. On an annual basis, April's print was 26.9% below April 2021's estimate of 809,000.
The print was not only at the lowest level in years, it also came below March's downwardly revised print of 709,000 units.
The median sales price of new homes sold in April was $450,600, with the average sales price coming in at $570,300.
Here's how benchmarks started trading after market open:
S&P 500 Index: -1.01% or -40.20 points to 3,933.55
Dow Jones Industrial Average: -0.44% or -141.29 points to 31,738.95