Stock futures extend Dow rally as Netflix earnings beat estimates
U.S. stock futures edged higher on Tuesday after a sharp rally for the three major indexes during the regular trading session.
Dow Jones Industrial Average futures rose 24 points, or 0.08%. S&P 500 and Nasdaq 100 futures climbed 0.22% and 0.46%, respectively. Netflix surged more than 7% in after-hours trading after saying it lost only 970,000 subscribers in the second quarter, less than the 2 million it had previously projected.
Traders betting that markets found a bottom and will be pushed forward by stronger-than expected corporate earnings drove stocks higher Tuesday, with all three major indexes trading above their 50-day moving averages for the first time since April.
The Dow rallied 754.44 points, or 2.43%, while the S&P 500 gained 2.76%. The Nasdaq Composite rose 3.11%.
Bank of America’s latest survey of professional investors showed that deteriorating investor sentiment has potentially set up a buying opportunity in the market. The U.S. dollar, which recently surged to a 20-year high against the euro, softened, giving the rally more steam.
Earnings also drove gains, with bank stocks such as Goldman Sachs and Bank of America ending the day higher following positive results. Both banks reported on Monday. Shares of Halliburton and Hasbro gained after beating earnings expectations.
“This was a broad rally today and some of it is just lower dollar, lower commodity prices, better reopening dynamics – and we saw that across the board,” Tim Seymour, founder and chief investment officer of Seymour Asset Management, on CNBC’s “Fast Money” Tuesday.