S&P 500 futures are down slightly in overnight trading, Netflix shares tank

Traders on the New York Stock Exchange.

Source: NYSE

Equity futures fell slightly during Tuesday night trading amid a sharp drop in Netflix shares, pointing to a third consecutive 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 near the flat line.

Netflix shares were down about 9% in long-term trading after the streaming giant reported additions to subscribers lagging well behind Wall Street’s estimates as the pandemic’s surge in demand began to fade. However, Netflix posted better-than-expected revenues for the first quarter.

Wall Street suffered back-to-back losses as reopening moves led the market down amid renewed concerns about the rise in new Covid cases worldwide. The Dow fell 250 points Tuesday on its worst daily performance since March 23, while the S&P 500 and Nasdaq were down 0.7% and 0.9% respectively.

United Airlines fell 8.5% on Tuesday after the airline reported its fifth straight quarterly loss, saying business and international travel is far from recovering. The State Department said it would increase “no travel” advisories 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 the market’s anxiety meter, rose for two consecutive days and was above 18 after hitting a 14-month low last week.

Companies have posted solid quarterly results, but the bar is set for earnings to lift the stock market up after a strong rally to record highs this year. The Dow and S&P 500 are still both up 10% for the year after breaking records on Friday.

“This has been a very good earnings season as 90% of the S&P 500 companies delivered robust results, but the problem for equities is that most of the good news has already been factored in,” said Edward Moya, senior market analyst at Oanda. in a note.

Verizon and Chipotle Mexican Grill will report numbers on Wednesday.

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