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Stock futures slip ahead of major technology earnings

U.S. stock futures slipped in overnight trading ahead of major technology earnings from Microsoft and Tesla on Wednesday. Dow futures ticked 45 points lower. Futures also pointed to a slightly lower open for the S&P 500 and Nasdaq-100. A few disappointing company earnings after the bell Tuesday weighed on investor sentiment. Shares of Snap dropped more than 9% in extended trading after the social media company reported fewer-than-expected daily active users.

Shares of United Airlines dipped in extended trading after the company reported a net loss of $1.62 billion for the second quarter. The coronavirus pandemic’s impact on travel fueled an 87% year-over-year revenue decline for the Chicago-based airline. Earnings season continues on Wednesday with reports from Microsoft, Tesla, Chipotle Mexican Grill, CSX and Las Vegas Sands after the closing bell. All eyes will be on Tesla’s earnings, which could make the company qualify to become a S&P 500 constituent.

The Nasdaq Composite underperformed, dipping 0.8% as Facebook, Amazon Apple, Netflix and Google-parent Alphabet all closed lower. The Nasdaq gained more than 2.5% on Monday. Better-than-expected earnings from Coca-Cola and IBM boosted sentiment on Wall Street on Tuesday. Coca-Cola rose more than 2% but IBM closed in the red.

Investors are also weighing company earnings against the backdrop of increasing coronavirus cases in the U.S. The virus has infected more than 3.8 million Americans and killed at least 141,118 as of Tuesday, according to data compiled by Johns Hopkins University. Texas and Florida hit a grim record Monday for daily coronavirus deaths based on a seven-day moving average, as hospitalizations continue to surge in 34 states across the United States.

President Donald Trump warned Tuesday the coronavirus pandemic in the United States will probably “get worse before it gets better.”

Existing home sales for June will be released at 10:00 a.m. on Wednesday. Economists polled by Dow Jones are expecting a rebound to 4.73 million sales.

Stock futures slip ahead of major technology earnings, CNBC, Jul 22

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