June 13, 2024

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US futures rise as technology rebounds, with Netflix earnings emerging

US futures rise as technology rebounds, with Netflix earnings emerging

US stock futures rose on Thursday, eyeing a tech-led comeback as TSMC's (TSM) upbeat results raised AI hopes and investors prepared for Netflix (NFLX) to kick earnings season into high gear.

S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) futures rose about 0.2% after the close with their recent declines. Nasdaq 100 (^NDX) futures also added 0.2% after technology stocks closed more than 1% lower.

Stocks struggled amid concerns that inflation is no longer cooling and that the Federal Reserve may ease interest rate cuts. This has put corporate earnings at the center of attention as investors closely watch how reports match high expectations.

Signs of strong demand for artificial intelligence in TSMC's results revived optimism for chip and technology stocks (XLK), which led to a pullback on Wednesday. The Taiwanese chip giant, seen as a leader in the industry, cited an “insatiable” appetite for artificial intelligence as it posted quarterly profits.

The earnings focus now turns to Netflix, as the focus shifts to technology stocks, including a group of “hot” companies. The streaming leader's financial update later Thursday is viewed by some as the first real test for stocks this earnings season, given that big tech still plays a big role in pushing markets higher.

Meanwhile, the market is still watching the debate over whether the Fed may refrain from cutting interest rates this year, given the “no-bottom” prospects for the economy. Policymakers, including John Williams and Rafael Bostic, are scheduled to appear on Thursday.

Initial unemployment claims for the week ending April 13 reached 212,000, according to Labor Department data released Thursday. The reading was lower than the consensus estimate of 215,000 compiled by Bloomberg.

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US bond yields continued to fall from their highest levels in the last five months, easing pressure on stocks. The 10-year Treasury yield (^TNX) fell by about 2 basis points to trade near 4.56%.

He lives2 updates

  • One of the fun things to do in a business newsroom: joke about battleground stocks when they're put through the wringer.

    This battleground stock today is none other than Tesla (TSLA), which has had a terrible 2024 for many reasons. The stock has fallen 11% in the past five trading sessions despite the company's new round of cost cutting. Shares are close to down 40% year to date.

    The pre-market joke of the day from the Yahoo Finance newsroom was how slow most people on the street were to reverse the stock's trajectory. Some analysts have changed their ratings, but the naysayers are still holding out.

    Yahoo Finance Live Director Valentina Kaval and reporter Madison Mills crunched the numbers on the matter, and here's where things stand.

    While more than 60% of analysts had a buy rating on Tesla stock in the past year alone, only 32% of analysts now have a buy rating on the stock. About 44% have a hold rating, while 23% have a sell rating.

  • US debt warnings continue – Bank of America CEO comments on the matter

    The International Monetary Fund caused quite a stir this week at its spring meetings in DC with its warnings about high levels of US debt ($34 trillion and counting).

    Amid these warnings, we've seen interest rates on 2- and 10-year Treasuries rise, and the air blow out of momentum stocks like Nvidia (NVDA).

    Bank of America President and CEO Brian Moynihan gets into the conversation about U.S. debt in a new interview with yours truly.

    “So you really have to let the debt flow at the right levels. It's fine now, but it's something we have to worry about,” Moynihan said on Yahoo Finance Live. “It's not something you sound the alarm and say we have to stop everything tomorrow.” . “It's something you have to manage over the next decade, because a little bit of work done each year adds up to a lot at the end of the decade.”

    You can watch our conversation on other issues like the state of US consumers below. More analysis on the company's earnings results this week here.