Traders on the New York Stock Exchange.
Source: NYSE
Stock futures fell slightly in trading overnight on Tuesday, amid a sharp drop in Netflix shares, which pointed to a third negative day on Wall Street.
S&P 500 futures fell 0.1% and Nasdaq 100 futures fell 0.4%. Dow Jones Industrial Average futures were trading near the flat line.
Shares of Netflix fell about 9% in expanded trading after the broadcast giant reported subscriber additions that fell well below Wall Street estimates as demand for the pandemic began to disappear. However, Netflix made better earnings than expected during the first quarter.
Wall Street suffered consecutive losses as the reopening of plays brought down the market amid renewed concerns about the rise of new Covid cases worldwide. The Dow fell 250 points on Tuesday for its worst daily performance since March 23, while the S&P 500 and Nasdaq slipped 0.7% and 0.9%, respectively.
United Airlines fell 8.5% on Tuesday after the company reported its fifth consecutive quarterly loss and said business and international travel is still far from recovering. The State Department said it would increase warnings of “not traveling” to 80% of the world’s countries, adding that the pandemic poses an “unprecedented risk to travelers.”
The Cboe volatility index, also known as the VIX or market fear indicator, rose for two consecutive days, landing above 18 after hitting a 14-month low last week.
Companies have had solid quarterly results, but the bar is high for profits to boost the stock market after a strong recovery from this year’s all-time highs. The Dow and S&P 500 continue to rise 10% year-on-year after breaking records on Friday.
“This has been a very good profit season, as 90% of S&P 500 companies gave robust results, but the stock issue is that most of the good news has already come at a price,” he said. Edward Moya, senior market analyst at Oanda. on a note.
Verizon and Chipotle Mexican Grill are expected to report figures on Wednesday.