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A tumble in shares of streaming giant Netflix pointed to a weaker open for the Nasdaq on Wednesday, though the other two indexes looked set to extend gains as investors focused on earnings and interest rate indices. Americans.

Netflix Inc fell 27.4% in premarket trading and dragged down Disney, Roku and Warner Bros Discovery after blaming inflation, war in Ukraine and fierce competition for the loss of subscribers for the first time in more than a decade.

It wasn’t quite catastrophic as IT giant IBM Corp rose 2.6% after saying it expected to hit the top of its 2022 revenue growth forecast, even as it announced a $300 million drop in revenue from the suspension of its activity in Russia.

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Overall, the earnings season started better than expected and could offset some of the impact of the war in Ukraine, soaring energy prices, inflation concerns and a Federal Reserve hawkish on US stocks.

Of the 49 companies in the S&P 500 that reported earnings through Tuesday, nearly 80% beat earnings estimates, according to Refinitiv data. Overall, 66% exceeded estimates.

The yield on 10-year Treasury inflation-protected securities (TIPS) briefly moved into positive territory for a second straight day. The rising yield on TIPS – essentially borrowing costs once the effects of inflation are eliminated – is a headwind for assets such as equities.

Still, U.S. stocks managed to rally on Tuesday, ending more than 1% higher as investors reacted to positive earnings from companies like Johnson & Johnson and dovish comments from two Federal Reserve officials on the rate hike. of interest.

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Investors will focus on the Fed’s “Beige Book” of economic conditions from late February to early April for details on the central bank’s monetary policy tightening plans.

As of 6:55 a.m. ET, Dow e-minis were up 61 points, or 0.18%, S&P 500 e-minis were up 3.5 points, or 0.08%, and e-minis Nasdaq 100 were down 10.25 points, or 0.07%.

Tesla Inc slid 0.2% ahead of its first-quarter results after markets closed. Investors will be watching whether the electric carmaker sticks to its ambitious 2022 delivery target as its biggest factory in Shanghai grapples with a COVID-19 shutdown and new factories slowly ramp up production.

Shares of chip equipment makers Applied Materials and Lam Research rose more than 1.5% after Dutch company ASML beat expectations for first-quarter results. US-listed shares of ASML jumped 5.3%. (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D’Silva)



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