NFLX stock is set for a double-digit percentage loss
A major post-earnings sell-off from Netflix (NFLX) is set to weigh on the broader stock market this morning. Futures on the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are trading slightly below fair value, but the tech-heavy Nasdaq-100 Index (NDX) is set for a more notable drop when the market opens.
NFLX is far from the only name in the earnings spotlight, however. In fact, blue chip UnitedHealth (UNH) is set for a lower open after its quarterly report, while Goldman Sachs (GS) and Johnson & Johnson (JNJ) are pointed higher. Wall Street will also have to keep an eye on the economic calendar, which today features housing data and industrial production numbers, and Fed Chair Jerome Powell will testify before the Senate Banking Committee.
Continue reading for more on today's market, including:
- Our trader explains the sector rotation stock bulls want to see.
- How options traders have been piling on AMD stock.
- Why gene editing stocks sold off yesterday.
- Plus, 3 stocks moving on earnings; IGT rises on a sports betting agreement; and the penny stock ready to double.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 858,956 million call contracts traded on Monday, compared to 604,182 put contracts. The single-session equity put/call ratio rose to 0.70, while the 21-day moving average ticked up to 0.61.
- Taking a closer look at this morning's earnings news, NFLX is down almost 13% in electronic trading on a big miss for domestic subscriber growth, proving bearish analysts right. UNH stock is also lower, down 1.9% before the open, despite better-than-expected earnings and a raised outlook. On the other hand, JNJ earnings topped expectations, as the shares try to come back from a recent negative court decision.
- International Game Technology PLC (NYSE:IGT) stock is up more than 7% in pre-market trading, after the company announced a sports betting agreement in New Jersey with fantasy sports expert FanDuel. The move comes as companies continue to adjust to the Supreme Court decision on sports betting from two months ago. IGT settled Monday at $24.40.
- IT issue Ameri Holdings Inc (NASDAQ:AMRH) is set to double in value at the open, thanks to news the company landed a big project from MedData. The shares made a huge -- though brief -- move back in January thanks to the company's push into blockchain. AMRH closed at $1.18 on Monday.
- The National Association of Home Builders (NAHB) housing market index is set to be unveiled, while Treasury International Capital (TIC) data will be released right at the market close. ADTRAN (ADTN), Charles Schwab (SCHW), CSX (CSX), Kinder Morgan (KMI), Progressive (PGR), and United Continental (UAL) will step into the earnings confessional, as well.
Stocks in Asia, Europe Slide
Most Asian markets got hit today, as tumbling global oil prices weighed on the energy sector. Hong Kong's Hang Seng gave back 1.3%, China's Shanghai Composite shed 0.6%, and South Korea's Kospi closed down 0.2%. Japan's Nikkei bucked the regional trend lower, though, adding 0.4% on a weakening yen.
Stocks in Europe are modestly lower at midday, as traders digest a fresh round of corporate earnings reports and the International Monetary Fund's downwardly revised growth forecasts for the U.K. and the eurozone. Among individual names making big post-earnings moves is Swedish-based chainsaw maker Husqvarna, which has shed 18% so far today. Looking at indexes, the French CAC 40 is down 0.4%, the German DAX is off 0.2%, and London's FTSE 100 is flirting with a 0.09% loss.