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Wall Street down at the opening
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Netflix disappointing results, stock lost 2% before the opening
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Bond yields are rising
US equity futures fell on the opening as investors assessed company earning reports. While the results in the banking sector were already highly anticipated, there are also surprises in other sectors - such as today’s disappointing Netflix report.
Wednesday's economic calendar in the US is quite light, although there is increased volatility in the market. Bond yields are rising amid concerns about the path of interest rates and climbed to its highest level in nearly a month above 3.6%. Bullar claimed yesterday that the monetary policy should remain tight. The latest inflation data shows still elevated prices. Bond yields provide a boost to the US Dollar, which regained its trend after recent decline. Currently, investors evaluate a 83% probability for a 25pb rate hike in May.
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US500 rejected from a significant resistance level at 4200 points and now is trading at 4160 points. As investors are digesting financial reports from blue chips, the US500 index probably will not break any important levels before next economic data or even next FED meeting in early May. Bullish momentum is weakening.
Top company news:
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Tesla (TSLA.US) falls as much as 2.8% after the electric-vehicle maker cut prices on the Model 3 and Model Y once more ahead of the company’s first-quarter results, due after the market closed.
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Netflix (NFLX.US) falls 3.85% after Q1 financial results publications in which the company revealed adding fewer subscribers than had been anticipated. However, analysts remain positive on the stock’s long-term prospects as the company raised its full-year free cash flow forecast.
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Exxon Mobil (XOM.US) upgraded to buy at UBS, with integrated oil companies seen best positioned to outperform in current upcycle based on improved balance sheets and more capital efficient asset bases.
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Morgan Stanley’s (MS.US) shares are down 0.4% and trading at $141 after the bank reported wealth management net revenue for the first quarter that beat the average analyst estimate. The firm’s equities sales and trading revenue was below consensus, while FICC sales and trading were ahead of estimates.
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Intuitive Surgical (ISRG.US) shares are up 12% to $301 after the maker of surgical tools reported procedure growth for the first quarter that beat the average analyst estimate. Brokers said Intuitive’s results bode well for peers, and show the environment is improving for such companies as they recover from pandemic-related disruptions to medical procedures.
