US futures confirm the positive trend, in the wake of the Netflix effect, which jumped by 13% in the pre-market on Wall Street, after the release of a quarterly that beat analysts’ expectations.
The Netflix stock was immediately rewarded by the analysts of JP Morgan, who upgraded the rating from “neutral” to “overweight”, raising the target price from 240 to 330 dollars. The group’s quotes travel to the record of the last few months.
In general, sentiment remains positive on Wall Street, even as several investment banks are revising their corporate America earnings projections to the downside in the background.
Interviewed by Cnbc Gene Goldman, investment manager of Cetera Investment Management, stressed that, although a moderate recession is possible, the market could still struggle to accept downgrades on the profits of listed companies:
“Estimates of earnings growth for companies listed on the S&P 500, expected at a rate of between 7% and 9% year-on-year, are a little too high. Slowing economic growth and Fed rate hikes are likely to put earnings pressure on them. And given that earnings affect stock prices, their downward revision could put the markets under pressure for some time ”.
Yesterday another session of buy for Wall Street, which saw the Dow Jones Industrial Average jump 337.98 points, + 1.12%, to close at 30,523.80 points; the S&P 500 gained 1.14% to 3,719.98, while the Nasdaq Composite was up 0.90%, to 10,772.40.
At approximately 1 pm Italian time, the futures on the Dow Jones rose by 337 points (+ 1.12%); those on the S&P 500 are up 1.14% and those on the Nasdaq Composite have a jump of 0.90%.
The positive news coming from the corporate America front, in the middle of the earnings season, continues to trigger the buy on Wall Street.
After the end of yesterday’s session, the accounts of the video streaming giant Netflix arrived, which announced that it had reported revenues in the third quarter of $ 7.93 billion, significantly higher than the expected $ 7.85 billion and an eps on an adjusted basis. of $ 3.10, well above the $ 2.22 expected by the consensus of analysts polled by Bloomberg. On a net basis, the number of subscribers increased by 2.41 million, against the expected increase of 1 million.
Net-based subscriber growth was the first this year: in the first and second quarters, Netflix lost 200,000 and 970,000 subscribers, respectively.
Even earlier, during the session, the accounts of the American banking giant Goldman Sachs had arrived, which, in the third quarter, reported profits and revenues down on an annual basis, but at better levels than expected.
In particular, Goldman Sachs’ eps fell from $ 14.93 in the same period of 2021 to $ 8.25, still better than the $ 7.75 expected by analysts polled by FactSet.
The US bank’s overall revenue fell from $ 13.61 billion in the third quarter of 2021 to $ 11.98 billion, better than the $ 11.42 billion forecast by the consensus.
Financial results from Tesla and IBM are expected today. In the meantime, the Tesla stock rises by 0.60%: even IBM scores an increase of about half a percentage point.
The boom of the Netflix title infects the titles of the streaming sector: in the pre-market Roku, Disney advance by about 2.5%.
Investors are also looking at the uncomfortable rumors about Apple. According to some rumors, Big Tech would have asked a supplier to stop the production of a component of the iPhone 14 Plus, at a time when it re-evaluates the trend in demand for its products.
The Information website specifically announced that one of Apple’s suppliers in China would have received the order to stop production immediately, less than 15 days after the debut of the new smartphone, and that two other Apple suppliers would have asked to proceed. with strong cuts. In Asia, the stocks of Apple’s suppliers have turned around, while on Wall Street the prices of the American giant fall by 0.35% in pre-market.