Dow futures fell on Thursday as corporate earnings continue to disappoint Wall Street. Even with expectations at 13-year lows, blue-chip US companies are failing to hit the mark.
IBM was the biggest drag on the Dow Jones Industrial Average on Thursday, falling 1 percent in pre-market trading. The tech company reporting year-on-year revenue losses. Poor results at Netflix also dragged down investor sentiment across the global stock markets.
Dow looks to extend losses
All signs point to a weak stock market open on Thursday, extending heavy losses for the US stock market. As of 5.42 am EST, Dow Jones Industrial Average (DJIA) futures traded 61 points lower at 27,170.
Earnings recession weighs on stock market
Traders anticipate a brutal earnings season, with the Financial Times predicting an “earnings recession,” a technical event that occurs on back-to-back quarters of negative earnings growth.
As results trickle in, the reality is hitting hard.
Netflix stock plunged 10 percent in after-hours trading Wednesday after dramatically missing the mark on subscriber growth.
IBM beat expectations, but the stock still plunged 1.3 percent overnight as revenue remains down year-on-year. It shows there is absolutely no room for error this earnings season. The market is priced to perfection.
— jeroen blokland (@jsblokland) July 17, 2019
The results are even worse in Europe.