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London - US index futures slipped, indicating equities will fall after reaching a fresh record.
Contracts on the S&P 500 Index expiring in September dropped 0.4% to 2 152.5 at 6:22 a.m. in New York, edging lower as European markets opened. Futures on the Dow Jones Industrial Average dropped 33 points, to 18 418.
The rally that pushed the S&P 500 to an all-time high for the fifth time in six days and the Dow to a fifth straight record is taking a breather as investors assess gains amid the ongoing earnings season. Goldman Sachs Group, Johnson & Johnson and Microsoft Corporation are among companies reporting results today.
Netflix sank 12% in early New York trading after saying that subscriber growth that missed its forecasts both at home and abroad.
"It might make sense to take a bit of profit," said Ben Kumar, investment manager at Seven Investment Management, which oversees €10bn. "If the US market is at an all-time high and you have a day of waiting for news, investors trim exposure."
American shares recovered from their losses after the British vote to leave the European Union, with the S&P 500 taking its annual gain to 6% amid signs of strength in the economy and speculation that the Federal Reserve will push back rate increases.
On Monday, the equity advance was led by technology shares amid deals activity, while profit at Bank of America Corporation beat projections.
Even as the earnings season has delivered more positive surprises than negative ones so far, analysts estimate net income at S&P 500 companies will drop 5.8% in the second quarter, which would make it a fifth straight decline, the longest streak since 2009.
Among other stocks moving on corporate earnings, UnitedHealth Group added 2.3% after the largest US health insurer reported quarterly profit that beat analyst estimates.
The International Monetary Fund is scheduled to update its growth projections on Tuesday as Managing Director Christine Lagarde warned last week that estimates may be cut.
In the US, housing data due at 8:30 a.m. Washington time are forecast to show a 0.2% increase in June after slipping 0.3% in May.
