Premarket drops by Priceline, Netflix and Disney also hurt
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U.S. stock futures on Wednesday pointed to a decline at the open, as premarket drops by Priceline, Netflix, Disney and TripAdvisor weighed, and as analysts also blamed the retreat on worries about escalating U.S.-North Korea tensions.
North Korea threatened a missile strike (http://www.marketwatch.com/story/north-korea-threatens-missile-strike-on-us-base-on-guam-2017-08-08) on a U.S. military base on Guam, with that saber-rattling coming early Wednesday in that country after President Donald Trump on Tuesday afternoon said he would respond with "fire and fury like the world has never seen (http://www.marketwatch.com/story/trump-today-president-says-north-korea-faces-fire-and-fury-if-it-doesnt-halt-threats-2017-08-08)" if the Asian country doesn't halt its threats.
S&P 500 futures lost 10.80 points, or 0.4%, to 2,462.00, while Dow Jones Industrial Average futures shed 40 points, or 0.2%, to 21,990.00. Futures for the tech-heavy Nasdaq-100 gave up 34.50 points, or 0.6%, to 5,883.50
"The geopolitical tensions have prompted a risk-off trade," said Naeem Aslam, chief market analyst at Think Markets UK, in a note. "President Trump's comments about North Korea have created nervousness."
On Tuesday, the S&P 500 , Dow and Nasdaq Composite all lost 0.2% (http://www.marketwatch.com/story/us-stocks-poised-to-dance-around-record-levels-again-as-more-earnings-hit-2017-08-08), finishing near session lows after Trump's tough talk about the isolated Asian nation.
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Other markets: Gold futures gained nearly 1% as investors moved toward safety plays, with the Swiss franc up more than 1%. European equities traded lower, after Asian markets mostly closed with losses (http://www.marketwatch.com/story/asian-markets-retreat-as-saber-rattling-over-north-korea-intensifies-2017-08-08). Oil futures edged up, while a key dollar index was little changed.
Individual movers: Shares in Walt Disney Co.(DIS) look set for a down day, losing 3.7% in premarket action. The media giant late Tuesday announced plans to end (http://www.marketwatch.com/story/disney-details-launch-of-espn-and-disney-streaming-services-plans-end-of-netflix-deal-2017-08-08) its distribution deal with Netflix Inc.(NFLX) and launch its own ESPN and Disney streaming services.
Shares in streaming giant Netflix fell 3.8% premarket.
See:Disney and Netflix was always a short-term relationship (http://www.marketwatch.com/story/disney-and-netflix-was-always-a-short-term-relationship-2017-08-08)
And read:What the ESPN streaming service will look like (http://www.marketwatch.com/story/what-the-espn-streaming-service-will-look-like-2017-08-08)
Priceline Group Inc.(PCLN) dropped 6.5% in thin trading ahead of the open. The online travel broker late Tuesday posted quarterly earnings that topped forecasts, but bookings missed expectations (http://www.marketwatch.com/story/priceline-shares-plunge-6-on-second-quarter-results-2017-08-08).
TripAdvisor Inc. shares (TRIP) shed 7% in light volume for the S&P 500's biggest premarket drop. The operator of travel websites reported weaker-than-expected quarterly results (http://www.marketwatch.com/story/tripadvisor-shares-fall-6-after-company-misses-quarterly-views-2017-08-08) late Tuesday.
Retailer Office Depot Inc.(ODP) , drug maker Mylan NV(MYL) and fast-food chain Wendy's Co.(WEN) are also likely to see active trading as they're among the companies expected to post earnings before the open.
Economic news: A report on second-quarter productivity and labor costs is slated to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting growth of 0.6% and 1.1%, respectively.
At 10 a.m. Eastern, a June figure for wholesale inventories is due to hit.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
On the Federal Reserve front, Chicago Fed President Charles Evans is scheduled to talk with reporters about the economy and monetary policy at 1 p.m. Eastern.
(END) Dow Jones Newswires
August 09, 2017 05:40 ET (09:40 GMT)