US pre-open: Stocks set for mostly lower open as Tesla, Netflix fall

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Sharecast News | 20 Jul, 2023

US stock futures pointed to a mostly weaker open on Wall Street on Thursday as investors mulled earnings from Tesla and Netflix.

At 1100 BST, Dow Jones Industrial Average futures were up 0.1%, while S&P 500 and Nasdaq futures were 0.2% and 0.8% weaker, respectively.

Joshua Mahony, chief market analyst at Scope Markets, said: "Elements of disappointment in earnings from both Tesla and Netflix may have rattled both stocks in after-hours trade, but broader index futures are looking unfazed, with the S&P set to be marked back slightly whilst the Dow is currently eyeing modest gains at the bell.

"Critically however with aspects such as Tesla relying on price cuts to fuel sales growth, this could be seen as further evidence of cracks emerging in the consumer fuelled economic boom, with questions now being asked as to just how long and how severe any correction will prove to be.

"Earnings news continues today and again with more discretionary consumer plays on the table - Johnson & Johnson and Philip Morris International being two key examples - more shortfalls here could see the mood darken after what has been a solid start to reporting season. Economic news is relatively limited but after yesterday’s shortfall in building permits, a marked decline in home sales could offer up fresh cause for concern, too."

Initial jobless claims data is due at 1330 BST, along with the Philadelphia Fed manufacturing survey. Existing home sales are scheduled for release at 1500 BST.

On the corporate front, Tesla was down 3% in pre-market trade, while Netflix was 6.5% lower.

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