Wall St set for lower open as Netflix slides, cases rise By Reuters

© Reuters. FILE PHOTO: A U.S flag is seen on the New York Stock Exchange in the Manhattan borough of New York City

By Shreyashi Sanyal and Devik Jain

(Reuters) – Wall Street’s main indexes were set to open lower on Wednesday as Netflix (NASDAQ:) kicked off quarterly earnings for technology behemoths with a disappointing report, while concerns about a surge in global coronavirus cases hit demand for equities.

The streaming service provider tumbled 9.2% in premarket trading after its report showed slower production of TV shows and movies during the pandemic hurt subscriber growth in the first quarter.

Shares of mega-cap firms, including Apple Inc (NASDAQ:), Amazon.com Inc (NASDAQ:), Facebook Inc (NASDAQ:) and Tesla (NASDAQ:) Inc, fell between 0.4% and 0.7%.

“Netflix is weighing on the tech sector for sure this morning,” said Dennis Dick, head of markets structure and a proprietary trader at Bright Trading LLC in Las Vegas.

“We get into the heart of all the major tech stocks reporting next week and the first one didn’t do that great and now that lowers the bar for Apple and Microsoft (NASDAQ:) etc.”

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. [MKTS/GLOB]

With the first-quarter earnings season picking up pace, analysts expect profit for companies to jump 30.9% from a year earlier, according to Refinitiv IBES data.

At 8:26 a.m. ET, were down 33 points, or 0.1%, were down 7 points, or 0.17%, and were down 53.25 points, or 0.39%.

Verizon Communications Inc (NYSE:) dropped 0.3% as it said it lost more wireless subscribers than expected during the first quarter due to intense competition. Shares of T-Mobile US (NASDAQ:) Inc and AT&T Inc (NYSE:) were also lower.

U.S. railroad operator CSX Corp (NASDAQ:) fell 0.5% after it missed estimates for first-quarter profit, hurt by frigid polar vortex temperatures, ongoing pandemic disruptions and higher fuel costs.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*