🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Netflix earnings, China's Q3 growth, gold's new record - what's moving markets

Published 2024-10-18, 03:48 a/m
© Reuters
NDX
-
US500
-
GC
-
LCO
-
CL
-
NFLX
-
BTC/USD
-

Investing.com -- US stock futures were muted on Friday, as investors assessed a raft of corporate earnings and fresh growth data out of China. Netflix's (NASDAQ:NFLX) quarterly income tops estimates, highlighting the streaming giant's drive to prioritize profit over subscriber additions. Elsewhere, gold hits an all-time peak and Bitcoin rises amid strong safe haven demand.

1. Futures muted

US stock futures wavered around the flatline on Friday following a mixed day on Wall Street in the prior session.

By 03:31 ET (07:31 GMT), the Dow futures contract had dipped by 30 points or 0.1%, S&P 500 futures had added 4 points or 0.1%, and Nasdaq 100 futures had risen by 33 points or 0.2%.

Healthcare stocks were some of the worst performers on Thursday, with Elevance Health in particular slumping after the group formerly known as Anthem (NYSE:ELV) slashed its full-year profit outlook. Molina Healthcare (NYSE:MOH) and Centene (NYSE:CNC) Corp also slid.

Meanwhile, chipmakers like Micron Technology (NASDAQ:MU) and Broadcom (NASDAQ:AVGO) ticked higher, buoyed by upbeat results from peer Taiwan Semiconductor Manufacturing Co. But the increases were tempered by weakness in freight transportation firm CSX (NASDAQ:CSX) and athleisure company Lululemon Athletica (NASDAQ:LULU).

By the end of the trading day, the benchmark S&P 500 had inched down marginally, erasing earlier gains, while the tech-heavy Nasdaq Composite inched up slightly and the 30-stock Dow Jones Industrial Average rose by 161 points or 0.4%.

2. Netflix posts most profitable quarter ever

Netflix reported better-than-anticipated quarterly income, in a sign of the streaming giant's push to emphasize profits over rapid subscriber growth.

The company added 5.07 million subscribers during its third quarter versus 8.76 million net new subscribers in the year-ago period, reflecting a waning impact from a crackdown on password sharing between customers that kicked off in 2023. Even still, the figure topped Wall Street estimates, helping send shares higher in extended hours trading.

Over half of the new subscribers in markets where Netflix's advertising-supported tier is offered selected the option, signaling some resilience in this crucial segment of the business. The trend helped offset a slate of new releases that Netflix said was "patchier than normal."

Earnings per share in the quarter came in at $5.40 and revenue rose to $9.83 billion, both above projections.

Net income is forecast to dip in the current quarter, although Netflix plans to roll out price increases in Italy and Spain to help drive revenue. It recently also hiked prices in other parts of the world.

3. Chinese economy grows 4.6% in third quarter

China's economy expanded at a slower pace in the third quarter, official data showed on Friday, highlighting the challenge facing Beijing as it attempts to reinvigorate sputtering activity in the country.

Chinese gross domestic product grew 4.6% year-on-year in the July-September period, in line with expectations but decelerating from 4.7% in the prior quarter. It was the lowest reading in 18 months, and below the government's full-year target of 5%.

Beijing has announced a string of stimulus measures over the past three weeks, marking China’s most concentrated efforts yet to shore up sluggish economic growth. A sustained deflationary trend, weak private spending and a prolonged property market crash have been the biggest weights on the world's second-largest economy.

Equities in China dipped after the release of the data on Friday, but erased those losses later in the session after the People's Bank of China launched new lending programs designed to boost share buybacks and other equity purchasing.

4. Gold touches record high

Gold prices hit a record high in Asian trade on Friday, extending a multi-year drive higher that has been bolstered by solid safe haven demand.

A closely-contested US presidential election, wider economic uncertainty and geopolitical tensions have given support to the yellow metal.

Spot gold rose 0.4% to $2,706 per troy ounce, while gold futures expiring in December rose 0.5% to $2,720.15 an ounce.

The price of Bitcoin, which is seen by some investors as a hedge to risk similar to gold, gained on Friday as well.

5. Oil rises

Oil prices edged higher Friday, but remained on track for their biggest weekly loss in more than a month on concerns around demand.

By 03:32 ET, the Brent contract climbed 0.3% to $74.66 per barrel, while U.S. crude futures (WTI) traded 0.3% higher at $70.89 per barrel.

Both benchmarks settled higher on Thursday for the first time in five sessions after data showed that official US inventories fell last week, but are still set to fall about 6% this week, their biggest weekly decline since Sept. 2.

Both OPEC and the International Energy Agency cut their forecasts for global oil demand earlier this week due in large part to worries over economic weakness in top oil importer China.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.