Wall Street cautious in the middle of the US quarterly earnings season. The Dow Jones rose by approximately 90 points (+ 0.25%), to 35,547.10 points; the S&P 500 advanced 0.25% to 4,530 points, while the Nasdaq is weak with a variation of + 0.07% to 15,137 points.
In the spotlight the financial results of Netflix which, after the end of the session on the eve, announced that it has concluded the third quarter of 2021 with a profit of 1.44 billion dollars, equal to an eps equal to $ 3.19 , much better than the $ 2.56 expected by the consensus.
Revenue amounted to $ 7.48 billion, in line with expectations, up 16.3% year-on-year, supported by the growth in subscriptions and also by the higher prices imposed by the giant.
Coinciding with the publication of the financial results, the American giant announced that, in the third quarter, its subscribers worldwide grew by 4.4 million, well above the +3.84 million forecast.
The group also announced that it expects growth in new subscribers practically double, equal to + 8.5 million units: this is one of the most optimistic forecasts in the history of Netflix, which also estimates, for the last quarter of the year, to generate $ 365 million in profits on revenue of $ 7.7 billion.
All very positive news – even if there is no shortage of discordant notes in the financial statements – in the face of a title that nevertheless loses ground.
The decline is also explained by Deutsche Bank’s downgrade on the stock, which explained that it is difficult to justify Netflix’s valuations in a situation in which, however, revenue growth is set to slow down in 2022. Analysts of the giant German bankers also reported that strong subscription growth was already discounted by the title.
Another special noted title is United Airlines, after the American airline reported a balance sheet, in the third quarter, better than analysts’ expectations, thanks to the recovery in travel and tourism. The stock is under pressure after gaining up to + 2% in premarket.
Ford moves up by more than + 2%, after Credit Suisse revised its rating upwards thanks to the auto giant’s more active presence in the electric car (EV) sector, expecting a 30% rally in the stock. Verizon and Biogen also did well after the publication of the quarterly reports: in particular Biogen beat the estimates on profits and turnover, also improving the guidance for the whole year.
Waiting at this point for the financial results that will be released after the end of today’s session by companies, such as IBM and Tesla. In all, more than 70 companies listed on the S&P 500 will report their balance sheets this week.
Yesterday the Dow Jones finished the session up nearly 200 points, or 0.56%, bringing back the third session positive in the past four days. The S&P 500 was up 0.74%, while the Nasdaq Composite gained 0.71%. Both indices rose for the fifth consecutive session, reporting the longest bullish phase since the end of August.
Focus on US Treasury rates with a 10-year maturity, which today rose to 1.67%, a record since mid-May, recovering sharply from 1.51% last week.
At the moment, 10-year yields remain bullish, but trim gains, climbing to 1.635%. 30-year Treasury rates rose to 2.096%.