Futures flat on worries over supply chain disruptions; Netflix falls

Oct 20 (Reuters) – U.S. inventory index futures have been flat on Wednesday as traders weighed the impression of provide chain constraints and inflation on company earnings, whereas Netflix shares remained sluggish after its quarterly report.

Netflix’s world sensation “Squid Recreation” helped lure extra prospects than anticipated, the world’s largest streaming service mentioned because it predicted a packed lineup would additional increase signups by way of the tip of the yr.

Its shares, nevertheless, fell 2.7% after hitting a document excessive earlier this month and gaining 18.2% year-to-date.

Analysts count on S&P 500 earnings to rise 32.4% from a yr earlier, in keeping with Refinitiv information, whereas additionally holding an in depth eye on progress outlook from firms which are confronted with rising prices, labor shortages and provide chain disruptions.

“Investor response to the newest set of earnings studies has been a contact hit or miss with provide chain points dogging each Procter and Gamble and Philip Morris,” wrote Danni Hewson, monetary analyst at AJ Bell in a consumer notice.

Different mega cap know-how and communication names have been blended in premarket buying and selling. Fb , up 0.6%, is planning to rebrand itself with new identify that focuses on metaverse, in keeping with the Verge.

Tesla Inc edged 0.4% decrease within the run as much as its quarterly outcomes after markets shut, with traders awaiting particulars on its efficiency in China.

Anthem Inc rose 0.6% because the second largest well being U.S. insurer raised its revenue outlook for 2021 after beating third-quarter revenue estimates.

United Airways Holdings gained 1.6% after the service reported a smaller quarterly loss than a yr in the past on journey rebound.

The benchmark S&P 500 index is simply 0.4% under its early September document shut, whereas the Dow Jones Industrials common is 0.5% under its all-time excessive reached in mid-August.

U.S. inventory indexes closed larger on Tuesday with the most important boosts from the know-how and healthcare sectors amid optimism about stable third-quarter earnings season.

Verizon Communication , Abbott Laboratories , Tesla Inc , Kinder Morgan and IBM are set to report their earnings later within the day.

At 7:19 a.m. ET, Dow e-minis have been down 8 factors, or 0.02%, S&P 500 e-minis have been down 0.25 factors, or 0.01%, and Nasdaq 100 e-minis have been up 10 factors, or 0.06%.

Ford Motor gained 1.9% after Credit score Suisse upgraded the U.S. automaker’s inventory to ‘outperform’ on EV transition.

Oil majors Exxon Mobil and Chevron Corp slipped 0.7% and 0.6%, respectively, monitoring crude costs. O/R/

Reporting by Devik Jain in Bengaluru; Modifying by Arun Koyyur

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