Stock futures drift lower, Netflix shares tumble after subscriber growth misses


Stock futures ticked lower Wednesday morning as investors considered whether lawmakers would manage to pass a stimulus package sometime this week.

A day earlier, the Nasdaq closed higher for the first time in six sessions as tech shares advanced. Alphabet (GOOG, GOOGL) investors shook off regulatory concerns after the Department of Justice formally filed an antitrust lawsuit against the company. Shares rose more about half a percent in early trading, outperforming the broader market.

House Speaker Nancy Pelosi told Bloomberg TV on Tuesday she was “optimistic” about progress being made in talks with the Trump administration, and agreed to keep discussing a deal past her original Tuesday deadline. White House Chief of Staff Market Meadows said on CNBC that negotiators were working hard to get a deal done by the weekend, and that White House increased its offer by another $80 billion to $1.88 trillion.

Still, however, questions remained over whether the Republican-controlled Senate would vote to advance any deal, even if House Democrats and the Trump administration were able to come to one in the near term. Republican Senators have so far balked at the high dollar amounts both House Democrats and the White House have been pushing for, though Senate Majority Leader Mitch McConnell told reporters including Reuters on Tuesday that he would “consider” a larger deal.

Meanwhile, shares of Netflix (NFLX) tumbled by more than 5% in early trading, after the company reported third-quarter new subscribers that missed an already low bar for expectations, as growth decelerated further following a strong surge in sign-ups earlier on during the pandemic. Snap (SNAP), on the other hand, surged more than 20% and was poised to open at a record high. The company posted its best quarterly growth in subscribers and sales in three years, as users engaged heavily with Snapchat’s newer augmented reality features and advertiser dollars flowed back to the platform.

Companies including Tesla (TSLA) and Chipotle (CMG) are set to report after market close on Wednesday.

9:13 a.m. ET: Verizon raises full-year profit guidance as 3Q new wireless subscribers top estimates

Verizon (VZ), the parent company of Yahoo Finance, posted third-quarter earnings and new wireless subscribers that topped expectations, as customers continued seeking out the carrier’s services during the pandemic.

Third-quarter adjusted earnings per share of $1.25 were better than the $1.22 expected, even with a 5-cent per share impact due to Covid-19 related impacts. Operating revenue of $31.5 billion was slightly below the $31.6 billion expected, and fell 4% over last year. Wireless postpaid net additions totaled 553,000, well above the 475,000 estimate, according to Bloomberg data.

Verizon said it now expects total wireless service revenue growth of at least 2% in the fourth quarter of 2020 compared to last year. It also raised its full year adjusted earnings per share guidance to a range of flat to up 2%, versus down to up 2% previously expected

7:20 a.m. ET: Wednesday: Stock futures edge lower

Here were the main moves in markets, as of 7:20 a.m. ET:

  • S&P 500 futures (ES=F): 3,428.25, down 4 points or 0.12%

  • Dow futures (YM=F): 28,125.00, down 57 points or 0.2%

  • Nasdaq futures (NQ=F): 11,645.00, down 15.75 points or 0.14%

  • Crude (CL=F): -$0.73 (-1.75%) to $40.97 a barrel

  • Gold (GC=F): +$6.90 (+0.36%) to $1,922.30 per ounce

  • 10-year Treasury (^TNX): +0.9 bps to yield 0.806%

6:01 p.m. ET Tuesday: Stock futures point higher

Here were the main moves in markets, as of 6:01 p.m. ET:

  • S&P 500 futures (ES=F): 3,440.00, up 7.75 points or 0.23%

  • Dow futures (YM=F): 28,197.00, up 15 points or 0.05%

  • Nasdaq futures (NQ=F): 11,676.5, up 15.75 points or 0.14%

NEW YORK, NEW YORK - MARCH 20: Traders work on the floor of the New York Stock Exchange (NYSE) on March 20, 2020 in New York City. Trading on the floor will temporarily become fully electronic starting on Monday to protect employees from spreading the coronavirus. The Dow fell over 500 points on Friday as investors continue to show concerns over COVID-19.  (Photo by Spencer Platt/Getty Images)
NEW YORK, NEW YORK – MARCH 20: Traders work on the floor of the New York Stock Exchange (NYSE) on March 20, 2020 in New York City. Trading on the floor will temporarily become fully electronic starting on Monday to protect employees from spreading the coronavirus. The Dow fell over 500 points on Friday as investors continue to show concerns over COVID-19. (Photo by Spencer Platt/Getty Images)

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