Nasdaq, S&P, Dow futures take a breather after sharp rally

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Stock index futures are mixed Wednesday with some consolidation after a broad-based jump in equities in the previous session.

Nasdaq 100 futures (NDX:IND) +0.2% are higher. S&P futures (SPX) -0.1% and Dow futures (INDU) -0.2% are lower.

Netflix is providing support on the growth side, up more than 5% premarket after smaller net loss in subscribers.

“This storm has been categorically downgraded, with losses much better than feared,” Sophie Lund-Yates, analyst at Hargreaves Landsdown said. “Still, with 1m customers signing out for good, things are hardly perfect. In fact, it’s hard to overstate how tough things are. Shareholders will still feel as though Netflix’s foundations are showing some fundamental cracks. Ones that are going to take a lot of time and heavy lifting to fill.”

Rates are lower. The 10-year Treasury yield is down 5 basis points to 2.97% and the 2-year yield is down 6 basis points to 3.17%.

The yield curve has been flattening a little, “which coincided with fed futures pricing increasing in 2023, contrary to recent increases which were driven by increases in Fed pricing through the end of 2022,” Deutsche bank’s Jim Reid said. “Indeed, the timing of the first Fed rate cut was pushed into Q2 2023, with policy rates expected to stay above 3.5% through the spring.”

More housing numbers arrive shortly after the start of trading. Economists expect a drop in June existing home sales to an annual rate of 5.38M.

“Existing home sales contribute less to GDP (which is a measure of new economic activity),” UBS chief economist Paul Donovan wrote. “Nonetheless, real estate agents generate some economic worth, associated purchases of furniture and appliances add to GDP, and existing home sales may also signal consumer confidence and the impact of policy.”

Elsewhere, Cathie Wood shuttered the ARK Transparency ETF after just eight months.