US Stock Futures Point Lower Amidst Tesla and Netflix Slump | Stock Market News

In the early hours of Thursday, US stock futures indicated a cautious start as both the S&P 500 and tech-heavy Nasdaq faced downward pressure. The dip came after disappointing results from prominent companies like Tesla Inc. and Netflix Inc. Tesla's CEO, Elon Musk, hinted at potential price cuts to boost demand, adding to investor concerns. As a result, Tesla shares slid 4.1% in premarket trading, despite the company beating quarterly profit estimates.

Similarly, Netflix witnessed a setback, tumbling 5.3%, as its quarterly revenue forecast fell short of analysts' expectations. The streaming giant's new money-making ventures were perceived as needing more time to generate returns, raising apprehensions among investors.

These developments set the tone for a cautious start to the day, with Dow futures inching up by 0.05%, S&P 500 e-minis down by 0.21%, and Nasdaq 100 e-minis slipping by 0.63%. The Nasdaq's notable performance this year has been backed by a strong rally in megacap growth and technology stocks, driven by optimism over artificial intelligence, a resilient US economy, and hopes of an imminent end to the aggressive rate-hike cycle by the US Federal Reserve.

Despite the dip in futures, the Dow recently achieved its longest winning streak in almost four years. Wednesday's gains were fueled by Goldman Sachs' impressive earnings, while major regional banks also experienced a surge in net interest income and stabilized deposits after a previous banking crisis.

However, the overall earnings picture remains a concern, with expectations of an 8.2% decline for the second quarter, based on Refinitiv data. This trend has prompted investors to closely monitor companies' earnings reports for any signs of improvement or potential challenges.

Some companies managed to stand out amidst the mixed market sentiment. Johnson & Johnson's shares rose by 1.0% after the healthcare conglomerate raised its annual profit forecast, banking on the strength of its medical devices business and demand for cancer drugs.

United Airlines also showed strength, advancing 2.6%, as the airline lifted its full-year profit outlook and reported the highest quarterly earnings ever, driven by robust demand for international travel.

However, Blackstone faced a 3% decline after the asset manager reported a sharp drop in quarterly distributable profits, primarily due to decreased asset sales from real estate and credit businesses.

Additionally, US-listed shares of Taiwanese chipmaker TSMC fell by 3.4% following a warning of a 10% sales drop projected for 2023.

Enterprise software provider IBM slipped 0.8% as its second-quarter revenue failed to meet Wall Street expectations, attributing the decline to reduced sales of its mainframe computers amidst reduced tech spending.

Truist Financial and KeyCorp, both financial institutions, shed 3.3% and 2.2%, respectively, after reporting downbeat quarterly earnings, signaling cautious sentiment among investors.

As uncertainties persist in the market, experts and analysts are closely monitoring the ongoing earnings reports, hoping for signs of economic recovery and sustainable growth. The responses to these reports will play a pivotal role in shaping the market's trajectory in the coming days.

Also Read: Stock Market Remains Cautious as Tesla and Netflix Earnings Awaited, Goldman Sachs in the Spotlight