Stock futures were up in the early morning trading hours of Wednesday as investors tried to move on from the dismal (NFLX) Netflix earnings results, and look forward to another string of major earnings reports scheduled for the rest of the week.
Futures on the Dow Jones Industrial Average (DJIA) were up 0.36%, while those on the S&P 500 (SPX) inched 0.39% higher, as of 8:13 a.m. EST, Wednesday. Meanwhile, the Nasdaq 100 (NDX) futures rose over the flatline by 0.48%.
Shares of Netflix nosedived more than 27% in the overnight trading after reporting the flight of 200,000 subscribers in the first quarter. This alarming drop had a trickle-down effect on the sentiments of investors of rival streaming companies like Disney (DIS), Roku (ROKU), Warner (WBD), Discovery, and Paramount (PARA), causing their shares to founder as well.
However, IBM’s (IBM) earnings and revenue beat earned the stock more than 2% gains in the pre-market session.
In the regular trading session of Tuesday, the major averages posted their best day in over a month, led by strong gains in 10 of the 11 major sectors. The Nasdaq Composite ended 2.15% higher, while the Dow rose 1.45%, and the S&P 500 increased 1.61%.
The gains were driven by top-rung tech companies like Microsoft (MSFT) and Alphabet (GOOGL), which gained 1.7% and 1.8%, respectively. Airline stocks also got a boost after the TSA (Transportation Security Administration) ended mandates on wearing masks in planes.
Meanwhile, the 10-year Treasury yield continued its upward trek, touching 2.94%. Moreover, the highly volatile oil prices fell 5% after the International Monetary Fund reduced its economic growth outlook based on the looming increase in inflation.
Market participants are also awaiting the U.S. existing home sales data for March that is due on Wednesday morning. Economists are expecting lower sales due to the rise in mortgage rates.
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