Dow Jones futures fell early Friday, while S&P 500 futures and Nasdaq futures edged higher, in the wake of a major global IT disruption grounding airlines and hindering various other industries. Shares of CrowdStrike took a beating in premarket trade, while Microsoft and Amazon.com came under some early pressure..
Netflix, Intuitive Surgical and American Express were earnings movers.
Dow Jones Futures
Dow Jones futures fell 0.25% vs. fair value. S&P 500 futures climbed and Nasdaq 100 futures rose 0.1%. Microsoft and American Express are Dow Jones components, with CrowdStrike, Netflix and Intuitive Surgical all S&P 500 and Nasdaq 100 members.
The 10-year Treasury yield climbed to 4.24% after rising 4.5 basis points to 4.19% on Thursday.
Crude oil prices fell slightly after dipping 3 cents to $82.82 a barrel on Thursday.
CrowdStrike Sparks Global IT Outage
A CrowdStrike update glitch caused a global IT outage via Microsoft cloud servers, leading to massive disruptions worldwide. Airline flights grinded to a halt, while financial systems, hospitals, media outlets and more faced significant issues.
CrowdStrike says it wasn't "a security incident or cyberattack," and a fix has been deployed. Disruptions continue at present.
But CRWD stock plunged more than 13% in premarket trade, though off its worst levels. Rivals such as Palo Alto Networks, Fortinet and especially SentinelOne rose.
Microsoft fell slightly. Amazon.com, which also experienced disruptions, also declined slightly.
CrowdStrike shares had already sold off in recent days, tumbling below a buy point and the 50-day line. MSFT stock had held the 50-day line on Thursday, within a prior buy zone.
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Stock Market Rally
The Dow Jones Industrial Average tumbled 1.3% in Thursday's stock market trading. The S&P 500 index shed 0.8%, just holding its 21-day line. The Nasdaq composite retreated 0.7%, now clearly below its 21-day line. The small-cap Russell 2000 sold off 1.85% after reversing from multiyear highs Wednesday.
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Earnings
Netflix subscribers grew by just over 8 million, beating views, as ad-supported users jumped. Earnings and revenue slightly topped. The streaming media giant guided higher on Q3 EPS but slightly lower on revenue.
NFLX stock rose about 1% Friday morning. Shares edged down 0.7% to 643.04 on Thursday, just above a 639 buy point from a cup base initially cleared in late May. But Netflix stock has pulled back below a rising 50-day line.
Intuitive Surgical earnings comfortably beat views. ISRG stock jumped more than 6% early Friday. Intuitive Surgical stock fell 2.4% on Thursday to 416.14, back in a buy zone and just undercutting the 50-day line.
American Express earnings beat and the Dow Jones credit card giant also guided higher. But revenue fell short. AXP stock fell modestly early Friday.
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