Stock index futures are mixed Wednesday as investors digest last night’s earnings and await more results from big names.
Nasdaq 100 futures (NDX:IND) -0.1% are on the back foot with a 25% plunge in Netflix weighing. The company reported its first subscriber loss in a decade and is also considering a lower-cost service with ads.
Rates are now declining after the 10-year real yield turned positive overnight for the first time since 2020. It’s now back at -0.05%.
In nominal yields, the 10-year Treasury is down 5 basis points to 2.86%, while the 2-year is down 1 basis points to 2.57%.
Existing home sales for March are due shortly after the start of trading. Economists predict a drop to an annual rate of 5.8M from 6M in February.
The numbers come on the heels of unexpected gains in March housing starts and building permits. Homebuilders rallied yesterday.
The “peculiar nature of the housing market is a focus, with housing starts far above housing completions,” UBS chief economist Paul Donovan said.
“A tight labor market and above-trend growth this year should support housing, yet higher market interest rates and ongoing Fed tightening will likely be headwinds to the sector,” MKM’s Michael Darda wrote. “Indeed, the Fed has said it intends for housing to slow and will continue tightening until it does so.”
“Thus, our view would be to focus on later cycle aspects of real estate (commercial over residential and reopening plays within commercial).”
The Fed’s Beige Book of regional economic activity comes out this afternoon and San Francisco Fed President Mary Daly, Chicago Fed President Charles Evans and Atlanta Fed President Raphael Bostic are speaking today.