Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, July 19, 2022.
Brendan Mcdermid | Reuters
Here are the most important information investors need to start their trading day:
1. Stocks slide
Stock futures fell Wednesday morning after a strong close Tuesday for major U.S. indices. Earnings were well above expectations, or at least not as bad as they could have been given the inflationary pressure on US consumers. Netflix, for example, easily exceeded its own low expectations for subscriber losses in its latest quarter. (Read more about that below.) But there are still plenty of earnings reports to come over the next few weeks, and there’s still plenty of uncertainty due to Russia’s war in Ukraine. Earnings reported for Wednesday include Tesla and United Air Lines after the bell.
2. Netflix sticks to it
An image from Netflix’s ‘Stranger Things’.
Speaking of not as bad, Netflix’s results managed to excite investors enough to drive the stock higher during after-hours trading despite losing revenue and a second straight quarter of subscriber losses. The company warned it could lose 2 million paying customers in the second quarter. Instead, likely largely due to the popularity of the “Stranger Things” series, she only lost nearly a million. Netflix also said it expects net additions of 1 million in the current quarter, which is lower than what Wall Street was looking for. That said, the company has given investors a bit more clarity about its plans to introduce a cheaper, ad-supported tier and how it aims to crack down on password sharing.
3. Mortgage demand falls
A “for sale” sign hangs in front of a home on June 21, 2022 in Miami, Florida. According to the National Association of Realtors, sales of existing homes fell 3.4% to a seasonally adjusted annual rate of 5.41 million units. Sales were 8.6% lower than in May 2021. As existing home sales declined, the median price of a home sold in May was $407,600, an increase of 14.8% from to May 2021.
Joe Raedle | Getty Images
Demand for mortgages fell to a 22-year low last week, according to new data Wednesday from the Mortgage Bankers Association. Week-over-week mortgage applications for buying a home fell 7%, and they were 19% lower than the same week in 2021. Home prices were already very high this year. But potential buyers still benefited from low mortgage rates. Then, borrowing costs for homebuyers skyrocketed after inflation ran wild and the Federal Reserve began raising rates to rein in soaring prices. Another rate hike is also likely next week, as central bank policymakers lean toward a 75 basis point hike.
4. A new vaccine on the American market
In this photo, a silhouette of a man holding a medical syringe and vial is displayed in front of the Novavax logo on a screen.
Cézary Kowalski | Light flare | Getty Images
Novavax shares in the premarket session slightly extended their big gains from Tuesday, when the Centers for Disease Control and Prevention approved the company’s Covid vaccine for adults. It joins snaps from Pfizer, Moderna and Johnson & Johnson, which have been widely available since last year. More than 75% of adults in the United States are now vaccinated against the disease, which has killed more than a million people in the United States and sickened millions more. The CDC hopes the Novavax vaccine, which uses more conventional technology that has been around for three decades, will inspire skeptics to get vaccinated.
5. Smooth Sailing for Cruising Stocks
A Royal Caribbean Cruises ship is docked in Bayonne, New Jersey, U.S., August 21, 2021.
andrew kelly | Reuters
In other CDC news, the government agency has scrapped its Covid program for the cruise industry. The scheme, which had previously become voluntary, required all passengers to be tested, while encouraging vaccinations for staff and passengers. The news sent shares of cruise lines Carnival, Royal Caribbean and Norwegian soaring on Tuesday. “We believe today’s news will give cruise lines more flexibility around youth inclusion,” an analyst at Stifel said.
– CNBC’s Carmen Reinicke, Sarah Whitten, Alex Sherman, Diana Olick, Spencer Kimball and Jack Stebbins contributed to this article.
— Register now for the CNBC Investing Club to follow Jim Cramer’s every stock market move. Follow the evolution of the market like a pro on CNBC Pro.