Dow futures point at third day of losses
Stock futures are pointing at a third day in the red for US equity markets, as more and more second quarter earnings are coming out.
Futures for the Dow and the Nasdaq Composite are down 0.2%, while S&P 500 futures are 0.1% lower.
"Sentiment has turned negative towards stocks amid concerns that this earnings season could be a weak one, especially for technology companies whose valuations are still sky-high," wrote Fawad Razaqzada, technical analyst at Forex.com.
Netflix, for example, reported earnings after Wednesday's close, including a massive miss on subscriber growth, which led its shares lower in premarket trading. The streaming business added 2.7 million new users in the second quarter, compared with a forecast of 5 million.
Aside from earnings, investors are weighing worries about the health of the economy against the anticipated growth-boosting interest rate cut by the Federal Reserve, expected in for the end of this month.
"But unless growth starts to pick up, central banks' actions will only help to delay the inevitable: a sizeable correction," Razaqzada said.
Strong dollar policy
In the world of currencies, the US dollar, measured by the ICE US Dollar Index, is 0.1% weaker at 97.160.
At the G7 finance ministers meeting in Chantilly, France, Treasury Secretary Steven Mnuchin said that the United States' dollar policy wouldn't change for now, which had market participants wondering whether currency intervention is on the horizon.
"The US is keeping its options opened for a possible currency intervention, as it always [has]," said Sebastien Galy, senior macro strategist at Nordea Asset Management.
"This is a potent threat to the BOJ and ECB to stop them from choosing more negative interest rates," he added.
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