Stock futures rise, Netflix shares slide after guidance disappoints

Stock futures rose Friday morning, with the three major indices on track to end the week higher.

The S&P 500, Dow and Nasdaq ended Thursday’s session lower, and the Dow ended a four-day winning streak, after new data showed a greater than expected number of new jobless claims were filed last week.

A rotation out of tech stocks also continued during Thursday’s session, with the information technology and Amazon-heavy consumer discretionary sectors among the laggards in the S&P 500. Shares of each of Facebook, Amazon, Microsoft and Apple fell on Thursday before holding near unchanged during the pre-market session. Peloton, another high-growth stock viewed as a winner of the “stay-at-home” trade, also fell after UBS downgraded the stock on valuation concerns.

Peer tech giant Netflix (NFLX) saw its stock slump in early trading after delivering a weak outlook for the current quarter, suggesting the streaming company’s incredible surge of new users would slow in the second half of the year. Netflix expects to add 2.5 million new users in the third quarter – half as many as consensus analysts anticipated. Still, the company’s 10 million new users in the second quarter were better than the 8.3 million expected.

Before market open, BlackRock reported quarterly profit and revenue that topped consensus expectations, though long-term inflows of $62.2 billion were short of consensus estimates for $78.6 billion. While down sharply from the $125 billion in inflows in the same period last year, the result as an improvement over last quarter, when BlackRock saw net outflows for the first time in five years as investors stayed on the sidelines as the pandemic spread.

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8:30 a.m. ET: Housing starts, building permits rise in June

New home-building rose by a slightly smaller than expected margin in June, but continued to improve on a month over month basis as housing recovered from the depths of the pandemic and business closures.

Housing starts rose 17.3% on a seasonally adjusted annualized basis to 1.186 million, just short of the 1.19 million expected, based on Bloomberg estimates. May’s housing starts were upwardly revised to 1.011 million from the 974,000 previously reported, with the revision reflecting a more than 8% month on month gain.

Building permits, a proxy for future home-building, also rose less than expected. These increased 2.1% over May to 1.241 million, whereas 1.293 million had been expected. Permits for May were modestly downwardly revised to 1.216 million, from the 1.22 million previously reported.

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7:17 a.m. ET: Stock futures look to end the week on a high note

Here were the main moves in markets, as of 7:17 a.m. ET:

• S&P 500 futures (ES=F): 3,206.75, up 12.25 points or 0.38%

• Dow futures (YM=F): 26,618.00, up 65 points, or 0.24%

• Nasdaq futures (NQ=F): 10,608.00, up 96.25 points, or 0.92%

• Crude (CL=F): -$0.24 (-0.59%) to $40.51 a barrel

• Gold (GC=F): +$5.50 (+0.31%) to $1,805.80 per ounce

• 10-year Treasury (^TNX): -1 bp to yield 0.602%

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6:05 p.m. ET Thursday: Stock futures tick higher in late trading

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:05 p.m. ET:

• S&P 500 futures (ES=F): 3,195.75, up 1.25 points or 0.04%

• Dow futures (YM=F): 26,559.00, up 6 points, or 0.02%

• Nasdaq futures (NQ=F): 10,528.00, up 16.25 points, or 0.15%

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