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S&P Futures Reverse Overnight Losses; Netflix Plunge Weighs On Nasdaq

S&P futures were little changed, paring earlier declines with the Nasdaq underperforming following dismal Netflix guidance after the company reported its worst quarter in 8 years, sending the stock 8% lower.  At 7:00a.m. ET, Dow e-minis were up 13 points, or 0.04%, S&P 500 e-minis were up 0.50 points, or 0.01%, and Nasdaq 100 e-minis were down 27 points, or 0.20%.

Nasdaq futures edged lower on Wednesday as Netflix kicked off quarterly earnings for technology behemoths with a disappointing report which barely saw any subscriber growth in Q2, while concerns about a surge in global coronavirus cases hit demand for equities. Netflix tumbled 8.1% in premarket trading after its report showed slower production of TV shows and movies during the pandemic hurt subscriber growth in the first quarter.

“Markets remain very much caught between the rock of improving macroeconomic conditions and the treacherous waters of geopolitical risks and alarming Covid-19 case growth in some corners of the world,” according to ING Groep NV strategists including Padhraic Garvey in a note to clients.

Wall Street closed lower in the previous session as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks’ apparently stellar earnings last week. Global stocks were also subdued on Wednesday due to rising concerns over spiking COVID-19 infections in Asia and their impact on oil prices.

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