Stock futures leaned modestly higher Tuesday, recovering from an early dip and looking toward a heavy slate of big name earnings reports.
Futures for the Dow Jones industrial average and the S&P 500 hung a fraction above fair value. Nasdaq 100 futures were up 0.3%, lifted by Netflix (NFLX), with help from T-Mobile (TMUS) and Xylinx (XLNX).
The weakening overnight of the Republican effort to overhaul healthcare sent futures lower and the U.S. Dollar Index to a 10-month low, which many market watchers read as a signal of ebbing investor confidence in President’s Trump’s ability to drive through promised policy reforms.
Netflix, Lockheed, Novartis Jump; Harley, Ericcson Slide
Big brand names were in motion all over the market early Tuesday, driven primarily by early earnings reports.
Netflix pounded out an 11% premarket gain, after reporting a 67% rise in second-quarter earnings, just below analyst targets, while a 32% revenue gain topped expectations and management raised its third-quarter sales and earnings guidance to above consensus views. The gain implied an open above a 166.97 buy point in a flat base. Premarket moves do not always hold after the starting bell.
Other than Netflix, FANG stocks were positive in early trade except for Amazon.com (AMZN), which slipped 0.4% in premarket action. Amazon has been trading in a tight range, below a buy point of 1,016.10 in a flat base, and above support at its 10-week moving average.
Beyond the earnings calendar, Puma Biotechnology (PBYI) pounced 8% higher after announcing the Food and Drug Administration had approved its Nerlynx breast cancer treatment, expected to reach the market in September. Puma shares ended Monday’s session up 204% from a May low, and just below a flat base buy point of 86.10.
Oil Holds, Europe Slides; Coming Up: Builder Confidence
Oil prices ticked slightly higher, despite Ecuador’s announcement it would abandon the Organization of the Petroleum Exporting Countries production cap agreement this month. The group’s compliance with the agreement began to weaken in June, according to Bloomberg. West Texas Intermediate traded up 17 cents to $47.69 per barrel.
The Labor Department will release import/export price data at 8:30 a.m. ET. The National Association of
Home Builders releases its July builder sentiment survey at 10 a.m. ET. Long-term treasury income capital flows numbers are due from the Treasury Department at 10 a.m. ET.
In Japan, Tokyo’s market reopened after a one-day holiday and the Nikkei 225 slid 0.6% as the dollar weakened against the yen. China’s markets in Hong Kong and Shanghai gained ground during their sessions.
In Europe, markets traded sharply lower with Frankfurt’s DAX down 0.9%, the CAC 40 in Paris off 0.7% and London’s FTSE 100 a fraction below its starting point in midday action.