26 July 2018 (9:03 AM, EDT)
U.S. stock markets are set to face a highly volatile and mixed intraday trend, with Facebook stock contributing to most of this volatility.
Facebook (and other social media sites like Twitter) have been making money by nefarious activities like selling customers’ data and promoting fake news for money.
Now that the European Union has imposed strict privacy policies, it is no wonder that Facebook’s earnings results have indicated profitability plunge in near future.
Facebook shares fell by more than -20% in after-ours trading and Nasdaq is expected to open wit a gap down on tis plus in Facebook stock.
But after that, Nasdaq and broader markets may see some volatile trading as some buying support may come in at lower levels in ten stocks including Facebook.
However, going by the dismal results and a series of downgrades by analysts, it is difficult to say if Facebook will see any substantial recovery.
Dow Jones futures are trading higher today, adding to yesterday’s rally. That will help Dow Jones break out of its stiff weekly and monthly range and if the index sustains today’s gains, it will be on its way to higher target of 26,150.
Expect a highly volatile and mostly rangebound trend in U.S. stock markets today. Different indexes will trade according to their own technical signals and results of their component companies.