Nasdaq Futures Bolstered by Netflix’s Subscriber Turnaround – After streaming giant Netflix reported a reversal in customer losses, Nasdaq futures held steady on Wednesday, but worries about rising interest rates weighed on the broader mood and appeared to be stalling a recent surge on Wall Street. The three main U.S. stock indexes have increased for two straight sessions thanks to strong quarterly results from major U.S. banks, which helped the reporting season get off to a strong start.
After adding 2.4 million more subscribers than expected in the third quarter and guiding for 4.5 million more by year’s end, Netflix saw a 12% increase in premarket trade. “Netflix is the latest tonic for battered bulls,” said Elsa Lignos, global head of FX Strategy at RBC Capital Markets.
“In recent days, two themes of European energy relief coupled with ‘better-than-expected’ Q3 earnings relief have taken hold, though it is still too early to judge and the bulk of big earnings releases don’t come until next week.”
People Also Read: Economist Peter Schiff Warns Fed Action Could Lead to Market Crashes
The increase in subscribers at Netflix helped the stocks of competing streaming services. Roku, Walt Disney, and Warner Bros. Discovery all saw gains ranging from 0.4% to 3.12%. Mega-cap growth companies including Alphabet Inc., Amazon.com, and Tesla Inc. gained 0.3% to 0.6%.
According to Refinitiv statistics, analysts have reduced their third-quarter earnings forecasts for S&P 500 companies from an 11.1% gain to just 2.8%. At 5:00 a.m. ET, Nasdaq 100 e-minis were up 12.25 points, or 0.15%, while S&P 500 e-minis were down 1.25 points, or 0.10%. The Dow was down 39 points, or 0.13%.
READ MORE
Bank of Canada Gov. Macklem Says Labor Market Needs to Cool
Biden Insists Inflation Averaged 2%, Even After Data Shows 8.2% Annual Jump
JPMorgan CEO Jamie Dimon Warns Recession Could Hit in 6 Months, Stock Market Could Drop 20% More
