Here are five things you must know for Tuesday, July 17:   

1. -- Jerome Powell to Address Congress

U.S. stock futures traded lower on Tuesday, July 17, ahead of Federal Reserve Chairman Jerome Powell's first testimony before Congress.

Powell is likely to tell the U.S. Senate Banking Committee on Tuesday at 10 a.m. ET, and the House of Representatives Financial Services Committee on Wednesday, July 18, that the central bank remains committed to gradual monetary policy tightening. The Fed raised rates in March and June, and has indicated two more rate hikes will be coming in 2018.

Powell also could speak about the narrowing yield curve, which has anticipated recessions when 2-year yields rise past 10-year note yields.

Minneapolis Federal Reserve Bank President Neel Kashkari argued in a blogpost on Monday, July 16, that there was "little reason to raise rates much further, invert the yield curve, put the brakes on the economy and risk that it does, in fact, trigger a recession ... if inflation expectations or real growth prospects pick up, the Fed can always raise rates then."

Contracts tied to the Dow Jones Industrial Average   fell 3 points, futures for the S&P 500  were down 2.50 points and Nasdaq futures fell 9.25 points.

The economic calendar in the U.S. on Tuesday also includes Industrial Production for June at 9:15 a.m. and the Housing Market Index for July at 10 a.m.

2. -- Netflix Falls Hard on Subscribers Miss

Netflix Inc. (NFLX)  was falling 12.6% in premarket trading on Tuesday after the streaming giant missed estimates on subscriber growth, perceived by many analysts as the key to Netflix's long-term dominance as it chases international markets and spends heavily on content and marketing.

Netflix added only 670,000 U.S. subscribers and 4.47 million internationally this quarter -missing projections of 1.2 million and 5 million, respectively.
 
"The domestic miss is a bigger problem, as it implies they're approaching a ceiling," said Wedbush's Michael Pachter. "Taken together with the Q3 guide (down 200,000 year-over-year), they look like they are rapidly reaching full saturation."
 
The worse-then-expected subscriber growth may also signal that Netflix's pricing power isn't as mighty as some may assume, according to Needham's Laura Martin.
 
"It demonstrates that there's an inverse correlation between subscriber growth and price increases. This notion that they have pricing power is flawed," Martin said.

3. -- Amazon's Prime Day Hits a Snag 

Amazon.com Inc.'s (AMZN) 36-hour Prime Day event began with one giant hiccup - immediately after the event kicked off at 3 p.m. ET on Monday, shoppers found themselves unable to use the Prime Day site, stuck in a frustrating loop of bad links and error pages.

Two hours later, Amazon posted a statement acknowledging that "some customers are having difficulty shopping, and we're working to resolve this issue quickly ... There are hundreds of thousands of deals to come and more than 34 hours to shop Prime Day."
 
Despite the early outage for many shoppers, Amazon said that "in the first hour of Prime Day in the U.S., customers have ordered more items compared to the first hour last year."
 
The Prime Day event was expected to be huge this year, with Coresight Research projecting $3.4 billion in sales, a significant jump from  an estimated $2.41 billion in sales last year. It's both a sales windfall and a strategic push for Amazon, designed to drive Prime subscriptions and promote newer sales channels like Whole Foods and Twitch.

The stock fell 0.6% in premarket trading.

Amazon is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN? Learn more now. 

4. -- Walmart in Cloud Partnership With Microsoft 

Walmart Inc. (WMT) said Tuesday it has chosen Microsoft Corp. (MSFT) as its strategic cloud provider "to further accelerate Walmart's digital transformation in retail, empower its associates worldwide and make shopping faster and easier for millions of customers around the world."

The five-year agreement between Walmart and Microsoft - fierce Amazon rivals - leverages the full range of the tech giant's cloud solutions, including Microsoft Azure and Microsoft 365.

The shared rivalry with Amazon "is absolutely core to this," Microsoft CEO Satya Nadella said in an interview with The Wall Street Journal.

5. -- Goldman, UnitedHealth Report Earnings

Goldman Sachs Group Inc. (GS) reported second-quarter profit of $5.98 a share, smashing estimates of $4.66. The stock fell 0.2% in premarket trading.

Goldman Sachs also said President David Solomon would take over the role of CEO, effective Oct. 1.

UnitedHealth Group Inc. (UNH)  posted second-quarter adjusted earnings of $3.14 a share, 10 cents above estimates. Shares fell 1.7%.

Johnson and Johnson (JNJ) earned an adjusted $2.10 a share in the second quarter, beating estimates of $2.07. The company said it expects adjusted earnings in 2018 of $8.07 to $8.17 a share. The stock rose 1.1% in premarket trading.

Goldman Sachs and UnitedHealth are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

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