Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, July 19, 2023.
Brendan McDermid | Reuters
Nasdaq 100 futures slipped Wednesday evening after Netflix posted its latest quarterly results.
Nasdaq 100 futures dipped 0.66%. S&P 500 futures slipped 0.22%, while Dow futures hovered just below the flat line.
Shares of Netflix dropped 8% in after-hours action after the streaming giant posted its second-quarter earnings report. The company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts, according to Refinitiv. Tesla shares tumbled 4% in extended trading as CEO Elon Musk and other executives said on an earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.
During the regular trading session, the Dow climbed more than 109 points, or 0.3%, in what was the index’s eighth consecutive day in the green and its longest winning streak since September 2019. Meanwhile, the S&P 500 gained 0.2%, while the tech-heavy Nasdaq Composite ticked up by 0.03%.
These gains came as companies are posting stronger-than-expected quarterly results. Three-quarters of the S&P 500 companies that have already announced have topped estimates, according to FactSet data. The strength in corporate earnings have created optimism for a soft landing for the economy.
“Investors are saying loud and clear that they expect the current stock market rally to continue,” said Tom De Luca, senior researcher at Vanguard. “Right now, short-term optimism is higher than we’ve seen since December 2021, right before the start of the 2022 bear market.”
Johnson & Johnson, Travelers, American Airlines and Blackstone are set to report earnings Thursday before the bell. Wall Street will also be keeping an eye on the weekly jobless claims numbers and existing home sales data.
