Market Snapshot: Dow futures rise 250 points with earnings from Delta, Biogen and AT&T on deck

Market Snapshot

Netflix more than doubled the new subscribers it expected amid the spread of COVID-19

Delta shares will be in focus on Wednesday.


Bloomberg News/Landov

U.S. stock-index futures were higher early Wednesday, a day after the broader market finished at the lowest level in about two weeks, amid concerns about oil’s price and the economic impact of the COVID-19 pandemic.

How are benchmarks performing?

Futures for the Dow Jones Industrial Average
YMM20,
+1.17%

traded up 255 points, or 1.1%, at 23,184, those for the S&P 500 index
ESM20,
+1.27%

gained 30.40 points, or 1.1%, at 2,762.50, while Nasdaq-100 futures
NQM20,
+1.09%

climbed 93.50 points, or 1.1%, at 8,525.75.

At Tuesday’s regular close, the Dow
DJIA,
-2.67%

fell 631.56 points, or 2.7%, to end at 23,018, the S&P 500 index
SPX,
-3.06%

lost 86.60 points, or 3.1%, to close at 2,736.56, with both benchmarks finishing at their lowest levels since April 7, according to FactSet data. Meanwhile, the Nasdaq Composite Index
COMP,
-3.47%

retreated 297.50 points, or 3.5%, to end at 8,263.23, marking its lowest close since April 13.

What’s driving the market?

Investors may take some heart from U.S. corporate earnings reported late Tuesday and the passage in the Senate of another coronavirus relief package worth about $500 billion to replenish funds for small businesses that were exhausted within days of applications opening, and will likely pass the House of Representatives Thursday, as President Donald Trump threw his support behind the measure.

The deal provides $100 billion for health care, split between $75 billion for hospitals, including some set aside for rural ones, and $25 billion for coronavirus testing.

An unprecedented collapse below zero in the price of oil futures
CL.1,
-2.16%

eroded the market’s bullish patina early this week, but values for crude appeared set to stabilize Wednesday, after the history-setting May contract expired and as West Texas Intermediate oil for June delivery looked set to recover a portion of its losses in electronic trade after settling at the lowest level for a most-active contract since 1999.

Although oil companies represent a sliver, at about 2.6%, of the overall S&P 500 index, the slump in crude prices has undermined investor confidence as the market recovers from its fall in the wake of the coronavirus pandemic, with the oil-price drop seen leading to bankruptcies among energy-related companies.

Meanwhile, Netflix Inc.
NFLX,
-0.83%

reported far better earnings than analysts’ consensus estimates and revealed record growth in subscribers amid stay-at-home protocols to slow the COVID-19 contagion. Netflix shares have been among the main drivers of the market’s gains from its bear-market low put in on March 23.

“Can shares continue their strength and buoy the overall market on Wednesday?” That’s the question BTIG analysts Julian Emanuel and Michael Chu posed heading into the day’s action.

Which stocks are in focus?
  • Shares of Netflix fall 1.1% as investors worry about the outlook for the streaming-media company after reporting record membership amid the pandemic.
  • Delta Air Lines Inc.
    DAL,
    -2.28%

    shares were up 0.9% before the bell and ahead of its quarterly results on Wednesday.

  • Shares of AT&T
    T,
    -3.58%

    were off 1.2% ahead of its quarterly results, due in the premarket.

  • Biogen Inc.’s stock
    BIIB,
    -3.06%

    climbed 2.6% premarket as investors awaited its earnings.

  • Kimberly-Clark Corp.
    KMB,
    -0.17%

    shares weren’t being trading actively ahead of its results, according to FactSet data.

  • Shares of energy company Baker Hughes Co.
    BKR,
    -1.77%

    weren’t seeing active trade before the opening bell, with its earnings set for release on Wednesday.

  • Chipotle Mexican Grill Inc.
    CMG,
    -2.72%

    said late Tuesday its sales rose 8% in the first quarter, thanks in large part to a surge in online sales that accounted for more than a quarter of the three-month revenue. Shares jumped 4.6% in premarket action.

  • Snapchat’s parent company Snap Inc.
    SNAP,
    -3.71%

    revealed advertising revenue rose above estimates that were diminished by fears of the spread of COVID-19. Shares surged 21% before the opening bell.

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