Dow Jones futures and S&P 500 futures fell slightly early Wednesday. Nasdaq futures declined modestly on Netflix stock, which headlined after-hours earnings movers. That followed another rough session for the stock market rally.
Growth names and small caps sold off Tuesday, with Futu Holdings (FUTU) crashing after a powerful breakout Monday. But travel plays tumbled too, with steelmakers, miners, energy companies, industrials and financials all retreating.
Tech titans held up reasonably well, with Microsoft (MSFT), Google parent Alphabet (GOOGL) and Facebook (FB) roughly flat. Apple (AAPL) retreated slightly after its ‘Spring Loaded’ product event but has been outperforming in recent weeks. But the strong action in Google stock, Microsoft, etc. has masked recent weakness.
Netflix earnings topped views but subscriber growth of 3.98 million fell well short. The FANG stock sees only 1 million new streaming customers in Q2. Netflix faces a post-pandemic environment amid growing competition from Disney (DIS) and its Disney+ streaming service.
NFLX stock plunged 9% overnight, signaling a move below the 50-day and 200-day lines. Shares reversed lower Tuesday to dip 0.9% to 549.57. Netflix stock has a 559.85 buy point from a tiny handle on a weekly chart, as well as a downward-sloping trend line just below that level. But that may not be relevant if NFLX stock plunges Wednesday.
DIS stock lost a fraction overnight. Disney stock fell 2.5% on Tuesday, dipping below its 50-day line and near the bottom of its flat base.
Roku (ROKU) fell 4% overnight, amid concerns that streaming growth overall will slow. ROKU stock sank 1.7% on Tuesday, continuing to retreat after hitting resistance at its 50-day line.
Other Key Earnings
Intuitive Surgical earnings topped forecasts for the robotic-surgical systems leader. ISRG stock rose 4% to about 842 in extended trade after shares closed down 8 cents to 811.11. Intuitive Surgical stock has an 812.89 buy point from a double-bottom base.
Edwards Lifesciences earnings topped views, with the medical device maker guiding up for Q2 and the full year. EW stock popped 4% in overnight trade. Shares rose 1.2% on Tuesday to 89.63, moving in a buy zone from an 88.30 double-bottom buy point, according to MarketSmith analysis.
CSX earnings missed while revenue topped. CSX stock fell 1.5% in late trade. Shares dipped 0.3% Tuesday after hitting a record high intraday. CSX stock is extended from a buy point.
Tenet Healthcare earnings topped views for the hospital operator. THC stock rose nearly 3% overnight. Tenet stock fell 1% to 52.04 Tuesday, just below its 50-day line but within a short consolidation that’s almost a proper base. The buy point for THC stock is 57.98. But investors could use 54.98, just above Friday’s high, as an early entry along with a 10-week line rebound.
Read More News: Futures Fall After Leaders Slammed; 5 Key Earnings Movers Late