S&P 500 futures are flat, Netflix shares tank after disappointing results, outlook

Stock futures were little changed Wednesday as investors digested disappointing Netflix earnings along with a host of other corporate reports.

Futures on the Dow Jones Industrial Average were up just 14 points, or less than 0.1%. S&P 500 futures dipped about 0.1%, and Nasdaq 100 futures lost 0.82%.

Shares of Netflix plummeted more than 26% in premarket trading after reporting a loss of 200,000 subscribers in the first quarter. The news led shares of streaming companies Disney, Roku, Warner Bros. Discovery and Paramount to fall, as investors and could further worry investors about buying technology stocks ahead of earnings. A slew of analysts also slashed their ratings on Netflix following its first-quarter results.

Meanwhile, IBM’s stock rose more than 1% following a beat on earnings and revenue. Procter & Gamble, another Dow component, posted better-than-expected results, sending the stock up about 1%. Procter also hiked its full-year revenue guidance.

Tesla and United Airlines are slated to report after the bell.

All the major averages saw strong gains on Tuesday, posting their best day since March 16. The Nasdaq Composite bounced back 2.15%, while the Dow Jones Industrial Average rose 499.51 points, or 1.45% and the S&P 500 gained 1.61%.

Tuesday’s stock market rally was broad-based with 10 out of 11 sectors ending the session in the positive, led by consumer discretionary. Some of the biggest gains came from Microsoft and Alphabet, which rose 1.7% and 1.8%, respectively, while airline stocks jumped after TSA lifted mask mandates on planes in response to a Florida court ruling.

Meanwhile, the 10-year Treasury yield hit above 2.94%, its highest level since December 2018. Oil prices fell about 5% after the International Monetary Fund cut its economic growth forecasts and warned of risks from higher inflation.

“I just think today we’re in a market where different things are shining,” Ally Invest’s Lindsey Bell told CNBC’s “Closing Bell” on Tuesday. “We’ve got a great earnings season so far and today the market is focusing on that. They’re focusing on the VIX that’s coming down and of course, oil prices — the fall in oil prices helps the inflationary story.”