Trader on the New York Stock Exchange.
Stock futures fell slightly in night trading Tuesday as Netflix stocks fell sharply, suggesting 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 fell about 9% in expanded trading after the streaming giant reported subscriber additions well below Wall Street estimates as the pandemic’s surge in demand wore off. However, Netflix did better than expected in the first quarter.
Wall Street has suffered consecutive losses as the reopening dragged the market down amid renewed concerns about the rising number of new Covid cases around the world. The Dow fell 250 points on Tuesday for its worst daily performance since March 23, while the S&P 500 and Nasdaq fell 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 are still far from recovering. The State Department said it would increase “do not travel” advice 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 to top 18 after hitting a 14-month low last week.
Companies have posted solid quarterly results, but the bar is high to lift the stock market to record highs this year after a strong rally. The Dow and S&P 500 are still up 10% over the year after breaking records on Friday.
“This has been a very good earnings season as 90% of the S&P 500 companies had robust results. The problem with stocks, however, is that most of the good news has already been priced in,” said Edward Moya, senior market analyst at Oanda in one Note.
Verizon and Chipotle Mexican Grill are expected to report numbers on Wednesday.