Traders on the New York Stock Exchange.
Source: NYSE
Equity futures fell slightly on Tuesday amid a sharp drop in Netflix shares, marking a third negative day on Wall Street.
S&P 500 futures fell 0.1% and Nasdaq 100 futures fell 0.4%. Futures on the Dow Jones Industrial Average traded close to the flat line.
Netflix shares fell about 9% in extended trading after the powerhouse reported that additions to subscribers that were less than Wall Street estimates began to blur the increase in demand for the pandemic. However, for the first quarter, Netflix performed better than expected earnings.
Wall Street has suffered back-to-back losses as the reopening of plays has lowered the market amid renewed concerns over the growing new Covid business 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 plunged 8.5% on Tuesday after the airline reported its fifth consecutive quarterly loss, saying business and international travel were far from recovering. The Foreign Ministry said the advice on ‘do not travel’ would increase to 80% of the world’s countries, adding that the pandemic posed an ‘unprecedented risk to travelers’.
The Cboe Volatility Index, also known as the VIX or the fear indicator of the market, rose for two consecutive days and came above 18 after reaching a 14-month low last week.
Companies are yielding solid quarterly results, but earnings are high to push the stock market higher after a strong rise in the record this year. The Dow and the S&P 500 are still up 10% for the year after breaking records on Friday.
“It was a very good earnings season, as 90% of the S&P 500 businesses performed well, but the problem for equities is that most of the good news has already been priced in,” said Edward Moya, senior market analyst at Oanda. said. in a note.
Verizon and Chipotle Mexican Grill will report numbers Wednesday.