By Sara Sjolin, MarketWatch

Netflix shares tank premarket after results disappoint

U.S. stock benchmarks were pointing to a weak opening on Tuesday ahead of Federal Reserve Chairman Jerome Powell's appearance before a Senate committee and as a round of corporate quarterly results failed to push markets higher.

What are markets doing?

Futures for the Dow Jones Industrial Average were down 16 points, or less than 0.1%, at 25,025, while those for the S&P 500 index slipped 5 points, or 0.2%, to 2,791. Futures for the Nasdaq-100 index dropped 28 points, or 0.4%, to 7,296, weighed by a sharp premarket drop in Netflix Inc.'s shares (NFLX).

The trading action comes after a mixed day on Monday (http://www.marketwatch.com/story/us-stock-futures-inch-higher-with-earnings-trump-putin-summit-in-focus-2018-07-16), when the Dow closed 0.2% higher, while the S&P 500 finished 0.1% lower and the Nasdaq Composite Index fell 0.3%, as upbeat economic data and a round of quarterly results.

What is driving the market?

Investors appeared reluctant to make big bets ahead of Powell's testimony to the Senate Banking Committee at 10 a.m. Eastern Time. The Fed chairman is due to appear before the House Financial Services panel on Wednesday.

However, the main attraction for investors is quarterly results, with a batch of Dow components and other major companies setting the early tone for the market.

Goldman Sachs Group Inc.(GS) reported second-quarter earnings that rose above expectations, but revenue fell below analysts' consensus estimates (http://www.marketwatch.com/story/goldmans-stock-falls-as-earnings-beat-but-revenue-misses-expectations-2018-07-17). In a separate internal memo, the investment bank also announced that CEO Lloyd Blankfein would step down Oct. 1 and be replaced by President David Solomon.

Johnson & Johnson(JNJ) reported second-quarter earnings and revenue that were better than expected but consumer sales failed to impress, sending shares slightly lower in premarket trade (http://www.marketwatch.com/story/johnson-johnson-reports-q2-earnings-revenue-beats-2018-07-17).

UnitedHealth Group Inc.(UNH) shares slumped after the health-care coverage and benefits company reported second-quarter earnings that beat expectations but premiums that missed.

Meanwhile, the technology-and-internet complex was being dragged lower by shares in Netflix Inc.(NFLX), which slid 13% ahead of the opening bell after the streaming-media company late Monday reported disappointing quarterly results (http://www.marketwatch.com/story/netflix-stock-slammed-after-second-quarter-subscriber-numbers-and-revenue-fall-short-2018-07-16). Both revenue and subscriber numbers came in weaker than expected.

Netflix is technically a consumer-discretionary company but the company's performance tend to influence shares of internet-related companies.

Read:Powell to defend pace of one interest-rate hike every three months (http://www.marketwatch.com/story/preview-powell-to-defend-pace-of-one-interest-rate-hike-every-three-months-2018-07-16)

What are strategists saying?

"We expect Mr. Powell to reiterate the sanguine baseline outlook for the U.S. economy that was highlighted in the FOMC minutes, as well as in recent speeches and interviews," said strategists at UniCredit in a note.

"The main risk to the Fed's baseline outlook is rising trade tension, and Mr. Powell will most likely warn against any further escalation. Democratic lawmakers will be keen to squeeze some critical statements on this topic out of Mr. Powell. However, one must not forget that Democrats have, in the past, favored protectionist measures much more than Republicans," they added.

What's on the economic calendar?

Industrial production (http://www.marketwatch.com/story/the-economys-heavies-boost-industrial-production-in-june-to-cap-off-strong-second-quarter-2018-07-17)rose 0.6% in June to more than offset a similarly sized decline in May, the Federal Reserve said Tuesday. That was a tick above the MarketWatch forecast.

The home builder's index for July is due at 10 a.m. Eastern.

See: MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

Which stocks are in focus?

CSX Corp.(CSX) and United Continental Holdings Inc.(UAL) are among companies on the earnings docket after the market's close.

Read more:Is Netflix falling down a mountain, or just tripping over a molehill? (http://www.marketwatch.com/story/is-netflix-stock-falling-down-a-mountain-or-just-tripping-over-a-molehill-2018-07-16)

Papa John's International Inc. stock (PZZA) was also in focus after the pizza company's founder said it was a "mistake" to step down as chairman last week (http://www.marketwatch.com/story/papa-johns-founder-it-was-a-mistake-to-resign-as-chairman-2018-07-17).

What are other markets doing?

Asian stocks closed mostly lower (http://www.marketwatch.com/story/asian-stocks-mostly-lower-as-weak-energy-shares-weigh-2018-07-16), but Japan's Nikkei 225 index bucked the negative trend.

Trading in Europe was mixed, leaving the benchmark Stoxx Europe 600 index struggling for direction.

Oil prices were little changed, rebounding after steep declines on Monday when chatter about possible releases from global reserves sent Brent crude and West Texas Intermediate oil down more than 4% (http://www.marketwatch.com/story/oil-price-drops-ahead-of-trump-putin-summit-2018-07-16).

Gold futures inched lower by 0.2% at $1,237 an ounce on Tuesday.

The ICE U.S. Dollar Index , a measure of the dollar against a half-dozen currencies, meanwhile, rose 0.2% to 94.698.

(END) Dow Jones Newswires

July 17, 2018 09:28 ET (13:28 GMT)