Nasdaq futures wilt as Tesla, Netflix disappoint
BNN Bloomberg
A slide in tech behemoths soured the mood Thursday as disappointing earnings cast doubt on the pillars of a record first-half for the Nasdaq 100 this year.
Futures on the Nasdaq 100 fell 0.8 per cent as investors digested Netflix Inc.'s missed sales estimates and disappointing third-quarter forecast. Tesla Inc. also fell after profitability shrank in the second quarter, a sign the electric-vehicle maker's margins are being squeezed.
Traders are hitting the pause button on a blistering rally that has taken the tech-heavy Nasdaq 45 per cent higher this year, outpacing the S&P 500's 19 per cent rise, on excitement about the potential for artificial intelligence.
Such returns on the back of a handful of tech stocks are “overdone” and may be the precursor to a downturn, Aegon Asset Management strategist Cameron McCrimmon warned.
