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Tesla, Netflix, J&J, Milwaukee Bucks - 5 Things You Must Know Wednesday

Stock futures are mixed as investors focus on earnings and rising coronavirus infections; J&J and Coca-Cola report earnings; Netflix forecasts sluggish growth; Tesla will open its charging network to other EVs.

Here are five things you must know for Wednesday, July 21:

1. -- Stock Futures Mixed With Earnings in Focus

Stock futures were mixed Wednesday following a rebound on Wall Street as investors focused on earnings and the economic impact of rising coronavirus infections across the globe.

Contracts linked to the Dow Jones Industrial Average gained 86 points, S&P 500 futures were up 4 points and Nasdaq futures fell 37 points.

The yield on the benchmark 10-year Treasury rose Wednesday to 1.233%. Earlier this week yields dropped below 1.2% as traders pared bets on any near-term moves on interest rates from the Federal Reserve amid increasing concerns that delta-variant infections will slow the global economic recovery. 

The Centers for Disease Control said the highly transmissible delta variant of the coronavirus now accounts for an estimated 83% of U.S. cases.

Stocks rebounded Tuesday as investors bought the dips from Monday's steep selloff. The S&P 500 gained 1.52%, recovering much of the losses from the previous session, which saw the broad market index fall the most in two months.

"We have been telling our investors to get used to the kind of volatility we’ve seen the past two days," said Jeff Klingelhofer, co-head of investments for Thornburg Investment Management. 

There will be "potholes on the path to recovery, and we aren’t out of the woods yet," he added.

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2. -- Wednesday's Calendar: J&J, Coca-Cola and Verizon Earnings

Johnson & Johnson  (JNJ)  reported second-quarter adjusted earnings of $2.48 a share vs. analysts' expectations of $2.29.

Coca-Cola's  (KO)  second-quarter adjusted earnings of 68 cents a share topped estimates of 56 cents.

Verizon Communications  (VZ) , Texas Instruments  (TXN) , Crown Castle  (undefined)  and CSX  (CSX)  also will be reporting earnings Wednesday.

Speaking more of Johnson & Johnson, a report said the company's single-dose vaccine was much less effective against the delta variant. The new study has not yet been peer reviewed nor published in a scientific journal. 

The data from the new study “do not speak to the full nature of immune protection,” a J&J spokesperson told The New York Times.

The economic calendar in the U.S. Wednesday includes Oil Inventories for the week ended July 16 at 10:30 a.m. ET.

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3. -- Netflix Slips on Sluggish Growth Expectations

Netflix  (NFLX)  was lower in premarket trading Wednesday after the streaming giant said it expects third-quarter subscriber growth to be sluggish.

Netflix forecast 3.5 million new customers in the third quarter, below analysts' estimates of 5.6 million.

For the second quarter, Netflix added 1.54 million subscribers, higher than Wall Street forecasts and the company's own internal estimates.

The company finished the quarter with 209.2 million paid memberships.

Netflix said that engagement per member household in the second quarter was down vs. "unprecedented levels" a year earlier while the world was in pandemic lockdown, but up 17% from the second quarter of 2019.

“COVID has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through,” the company said in a letter to shareholders. “We continue to focus on improving our service for our members and bringing them the best stories from around the world.”

The stock fell 0.98% to $525.87 in premarket trading Wednesday.

4. -- Tesla to Open Its Charging Network to Other Electric Vehicles

Tesla  (TSLA)  CEO Elon Musk said the electric vehicle company would be opening up its Supercharger network to other electric vehicles later this year. 

Musk added Tesla's Supercharger network will “over time” be open to all electric vehicles in “all countries."

Tesla is expected to report second-quarter earnings next Monday.

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The stock rose slightly in premarket trading Wednesday to $657. It has declined 6.4% so far this year.

5. -- Milwaukee Bucks Win NBA Championship

The Milwaukee Bucks defeated the Phoenix Suns 105–98 on Tuesday evening to close the NBA Finals in six games and win the team's first NBA championship since 1971.

Giannis Antetokounmpo of the Bucks, the NBA Finals MVP, finished the game with 50 points, 14 rebounds and five blocks. 

Bucks Beat Suns in Game 6 to Win First Championship in 50 Years