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The stock market was falling Tuesday, after

Snap

blamed the economy when it lowered its sales and profit guidance for the current quarter, rekindling worries about a recession.

Dow Jones Industrial Average
futures have fallen 233 points, or 0.7%, while

S&P 500
futures have dropped 1.2% and

Nasdaq Composite
futures have slumped 1.9%.

“Global equities sold off with lower revenue and profit guidance from Snap Inc. serving as the catalyst,” wrote Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets. 

Snap (ticker: SNAP), the parent company of the popular social media app Snapchat, said in a filing with the Securities and Exchange Commission that it will likely see sales and Ebitda—short for earnings before interest, tax, depreciation, and amortization—come in at the lower end of its guidance range for the quarter. That’s because “the macroeconomic environment has deteriorated further and faster than anticipated,” the company said in the filing. 

The stock has declined 31% at 8:10 a.m. in premarket trading. 

The company’s EBITDA guidance range for the quarter was between $0 and $50 million on sales of just over $1.1 billion. With the higher end of that range now unlikely, RBC analysts lowered their 2022 EBITDA estimate to $310 million from $692 million and cut their 2023 estimates by a similar percentage as well. 

For the rest of the digital advertising and e-commerce area, “the [Snap] read for the space is broadly negative,” wrote RBC analyst Brad Erickson. 

Indeed,

Meta Platforms

(FB) stock dropped 7.1%.

Alphabet

(GOOGL) stock fell 3.8%, while

Pinterest

(PINS),

Etsy

(ETSY), and

eBay

(EBAY) fell 12.3%, 1.4%, and 0.8%, respectively.

Amazon.com

(AMZN) stock dropped 1.9%. 

For the rest of the market, the fear is that consumers are spending less. That’s consistent with what

Target

(TGT) showed on its earnings report, which revealed that consumers were spending more on essential items and less on discretionary products like clothing and electronics.  

Ultimately though, Snap’s earnings rekindled worries about a recession, worries that the market seemed to be willing to put aside following

JPMorgan Chase
’s
(JPM) investor day Monday. That, in turn, has put the brakes on a big rally in the past few days. The S&P 500 had gained 4.3% from a Friday afternoon bottom when the index hit bear market territory to Monday’s close.  

Here are some other stocks on the move Tuesday: 

Zoom Video

(ZM) rose 3.1% after the videoconferencing company posted better-than-expected profit in its fiscal first quarter ended April 30.

Best Buy

(BBY) has declined 4% after its sales topped estimates.

Abercrombie & Fitch

(ANF) stock tumbled 28% after reporting a surprise loss.

Insulet

(PODD) has risen 11% on reports it is in talks to be acquired by

DexCom

(DXCM). DexCom stock was down 8.9%.

Roblox

(RBLX) stock dropped 5.2% after getting downgraded to Neutral from Overweight at Atlantic Equities. 

AutoZone

(AZO) stock fell 0.5% after the company reported a profit of 29 cents a share, beating estimates of 26 cents a share, on sales of $3.9 billion, above expectations for $3.7 billion. 

Write to Joe Woelfel at joseph.woelfel@barrons.com and Jacob Sonenshine at jacob.sonenshine@barrons.com