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Nio Stock Drops, Netflix Sinks, and the Dow Might Open Higher - Barron's

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U.S. stocks ticked up slightly in premarket trading as investors fretted about increased tensions between the U.S. and China as well as coronavirus cases continuing to increase on what feels like a stereotypical summer Friday.

Futures for the Dow Jones Industrial Average crept up 75 points, or 0.3%. S&P 500 and Nasdaq Composite futures were up 0.4% and 0.9%. Because of how the futures work, however, the S&P 500 looks set to open up 0.2%, while the Dow could open up 0.3% and the Nasdaq flat.

Oil dipped slightly over demand worries. The price of WTI crude was off by 0.5% at $40.53 a barrel while Brent crude was down 0.7% at $43.08 a barrel.

Netflix (NFLX) shares were off by 8.6% premarket as the video streaming service’s expectations for subscriber growth fell short of analyst expectations. Netflix added 10 million subscribers last quarter and expects to add 2.5 million in the current quarter, well below analyst expectations.

Twitter (TWTR) shares slid 0.7% after revealing that 130 accounts were targeted in the security breach earlier this week in which accounts of prominent people like Tesla (TSLA) CEO Elon Musk, Amazon (AMZN) CEO Jeff Bezos, and presidential candidate Joe Biden were compromised.

Cruise lines were hurt in premarket trades after the Centers for Disease Control and Prevention extended a no-sail order through September. Carnival (CCL) shares were off by 1.7%, Norwegian Cruise Line (NCLH) shares fell by 1.8% and Royal Caribbean Cruises (RCL) shares fell by 2.8%.

Nio (NIO) has dropped 4.7% after Goldman Sachs cut the Chinese electric-vehicle maker to Sell from Neutral.

Write to Carleton English at carleton.english@dowjones.com

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July 17, 2020 at 07:33PM
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Nio Stock Drops, Netflix Sinks, and the Dow Might Open Higher - Barron's
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