S&P 500 futures fall slightly in overnight trading, Netflix shares

New York Stock Exchange traders.

Source: NYSE

Futures futures fell slightly on Tuesday amid a sharp drop in Netflix shares, indicating a third consecutive negative day on Wall Street.

The S&P 500 futures fell 0.1% and the Nasdaq 100 futures fell 0.4%. Dow Jones Industrial Average futures traded close to the flat line.

Shares of Netflix fell about 9% in extended trading, after the streaming giant reported additions of subscribers that did not exceed Wall Street estimates as rising pandemic demand began to fade. However, Netflix posted better-than-expected earnings in the first quarter.

Wall Street suffered back-to-back losses as the reopening of plays led the market to decline, amid renewed concerns about the rise of new Covid cases globally. The Dow fell 250 points on Tuesday for its weakest 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 carrier reported its fifth consecutive quarterly loss and said business and international travel is still far from recovering. The State Department said it would increase “no travel” permits to 80 percent 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 market fear indicator, rose for two consecutive days, landing over 18 after reaching a 14-month low last week.

Companies have achieved solid quarterly results, but the bar is raised for earnings to lift the stock market higher, after a strong rally to reach this year’s highs. The Dow and S&P 500 are still up 10% for the year after reaching record highs on Friday.

“This has been a very good earnings season, as 90% of S&P 500 companies have had robust results, but the stock issue is that most of the good news has already come at a price,” said Edward Moya, a senior market analyst at Oanda. in a note.

Verizon and Chipotle Mexican Grill are expected to report figures Wednesday.

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