Stock futures fell on Wednesday morning after gaining more than 2% across the board on Tuesday. All three major indices had been in positive territory before dipping into negative territory around 6:30 AM ET.
Investors continue to remain focused on corporate earnings season, with results from Netflix (NFLX) after the close on Tuesday serving as first results this quarter from a major tech company.
Netflix reported a loss of 970,000 subscribers in the second quarter, fewer than the 2 million the company had expected to lose. This did, however, mark the second-straight quarter of declines at the streaming giant.
Netflix shares were poised to gain more than 7% at the market open on Wednesday, a potential positive sign that “better than feared” results this earnings season will be rewarded by investors.
And even with investor fears around recession remaining elevated, expectations ahead of this quarterly earnings season have not been entirely re-written, as Nick Colas, co-founder at DataTrek Research, highlighted in a report out Tuesday.
The earnings calendar remains busy on Wednesday with Biogen (BIIB) and Abbott Labs (ABT) among the notable companies set to report before the bell.
Results from Tesla (TSLA) and United Airlines (UAL) will feature after today’s closing bell.
Tuesday’s rally in markets also came on the same day Bank of America Global Research published its latest fund managers survey, the firm’s closely-watched gauge of investor sentiment.
The headline on this latest report said it all about the current state of markets — “I’m so bearish, I’m bullish.”
BofA’s report showed what strategist Michael Hartnett called a “dire level of investor pessimism,” with expectations for profits and growth at all-time lows, investor equity allocations at the lowest levels since Lehman’s collapse in 2008, and cash levels at the highest balances since 9/11.
This post will be updated.
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