S&P 500, Nasdaq futures fall as Netflix shares tank on disappointing results, outlook
Stock futures dipped in overnight trading as investors digested disappointing Netflix earnings and looked ahead to a new batch of companies set to report Wednesday.
Futures on the Dow Jones Industrial Average fell 50 points. or 0.14%. S&P 500 futures dipped 0.4% and Nasdaq 100 futures sank 0.8%.
Shares of Netflix plummeted 25% in extended trading after reporting a loss of 200,000 subscribers in the first quarter. The news led shares of streaming companies Disney, Roku, Warner Bros. Discovery and Paramount to fall and could further worry investors about buying technology stocks ahead of earnings. Meanwhile, IBM's stock rose 3% after hours following a beat on earnings and revenue.
All the major averages saw strong gains during regular trading, posting their best day since March 16. The Nasdaq Composite bounced back 2.15%, while the Dow Jones Industrial Average rose 499.51 points, or 1.45% and the S&P 500 gained 1.61%.
Tuesday's stock market rally was broad-based with 10 out of 11 sectors ending the session in the positive, led by consumer discretionary. Some of the biggest gains came from Microsoft and Alphabet, which rose 1.7% and 1.8%, respectively, while airline stocks jumped after TSA lifted mask mandates on planes in response to a Florida court ruling.
Meanwhile, the 10-year Treasury yield hit above 2.94%, its highest level since December 2018. Oil prices fell about 5% after the International Monetary Fund cut its economic growth forecasts and warned of risks from higher inflation.
«I just think today we're in a market where different things are shining,» Ally Invest's Lindsey Bell told CNBC's «Closing Bell» on Tuesday. «We've got a great earnings season so far and today the market is focusing on that. They're
Read more on cnbc.com
