4:12pm: Upbeat earnings lift stocks
US stocked booked new records on Friday driven by a strong earnings report from the streaming giant Netflix, which boosted its stock by 11%.
The S&P 500 notched a record high close of 5,864, up 0.4%. The Nasdaq added 0.6% at 18,489 points while the Dow Jones was up 0.1% at 43,275 points.
3:20pm: A look ahead
Deutsche Bank expects the upcoming week to be relatively quiet for economic data and Federal Reserve events. Fed-related appearances are limited to Monday, with non-voting officials Logan, Kashkari, and Schmid, along with voting member Daly, scheduled to speak. The Beige Book, released Wednesday, could offer qualitative insights into the economy amidst recent data volatility.
Key economic data includes durable goods orders on Friday, with a forecast of a -0.7% drop due to the Boeing strike, though ex-transportation and core orders are expected to show moderate gains. Housing updates include existing home sales on Wednesday and new home sales on Thursday, both potentially impacted by Hurricane Helene.
Thursday's jobless claims data may also be influenced by the Boeing strike and recent hurricanes, with some uncertainty around the 245k forecast. Finally, Friday’s revised University of Michigan consumer sentiment survey will be closely watched for shifts in long-term inflation expectations and voter sentiment ahead of the November election.
1:30pm: Gold reaches historic $2,700 mark
Tech stocks led gains again by Friday afternoon as investors reacted positively to Netflix's (NFLX) strong earnings, lifting the Nasdaq Composite by 0.6% and the S&P 500 by 0.3%. The Dow Jones reached a record high of 43,310 points before pulling back slightly to trade closer to Friday's opening levels.
All three indexes are poised for a sixth consecutive weekly gain, with the Nasdaq and S&P up about 0.7% and the Dow set to rise 0.9%.
Meanwhile, gold prices surged to a record $2,700 an ounce as concerns over Middle East tensions and the uncertain U.S. presidential election drove investors toward safer assets.
12:00pm: Recession fears fade amongst big banks
Of the 17 companies in the KBW Bank Index that have reported third-quarter earnings, references to "recession" or "economic slowdown" during their calls have steadily declined over the course of the year, notes Adam Turnquist, Chief Technical Strategist for LPL Financial.
In contrast, mentions of "soft landing" or "economic growth" have increased this quarter.
According to JPMorgan Chase’s (JPM) Chief Financial Officer, Jeremey Barnum, the bank’s results this quarter were “consistent with a soft landing,” adding, “The consumer is fine and remains in effect on strong footing.”
"At a high level, results have been good enough to drive the broader banking space to year-to-date highs," Turnquist commented.
"The return of animal spirits in deal making has been a major theme as investment banking revenue surged across most major banks. A jump in asset management fees, better-than-expected sales and trading activity, and improving net interest income outlooks have been other key themes of the reporting season thus far."
11:15am: Netflix dominance unmatchable: analyst
Netflix's dominant position in the streaming market is unmatchable by competitors, according to Wedbush.
Analysts highlighted Netflix’s advertising tier as a key growth driver, helping reduce churn and enhance revenue over the coming years, with significant contribution expected by 2026.
Wedbush also heralded the company’s ability to balance global content creation costs with profitability alongside expanding margins and free cash flow.
Wedbush is optimistic about Netflix’s solid Q3 results, strong Q4 guidance, and 2025 outlook, expecting EPS to double between 2023 and 2026.
9.50am: Netflix leads markets higher at opening bell
The Nasdaq 100 climbed more than 100 points in opening trades, adding more than half a percentage point to the tech-focused index.
Microchip stocks led the charge after TSMC’s revenue beat added some renewed optimism into the sector.
Arm Holdings PLC (NASDAQ:ARM), Broadcom Inc (NASDAQ:AVGO, ETR:1YD) and Micron Technology Inc (NASDAQ:MU) all added low single digits, while Nvidia Corp added 0.9%.
The Dow Jones Industrial Average went the other way, sliding 0.4%, while the broader S&P 500 index added 0.2%.
Netflix Inc (NASDAQ:NFLX, ETR:NFC) soared nearly 8% following yesterday’s impressive third-quarter revenue beat.
On the other hand, American Express Company (NYSE:AXP, ETR:AEC1), which just published its own third-quarter results, fell around 5%.
This is despite topping estimates and raising full-year guidance.
7.14am: Stocks looking buoyant
Wall Street looked on course for a positive start on Friday as traders mulled another busy day of company updates.
Futures had the Nasdaq up 77 points ahead of the opening bell, while the Dow Jones and S&P 500 were seen 11 and 9 points higher respectively.
American Express Company (NYSE:AXP, ETR:AEC1) and Schlumberger NV (NYSE:SLB) were among those to report on their third-quarter performances early on, with shares in each climbing by over 2% in pre-market trading respectively.
American Express reported an 8% increase in total revenues net of interest expense to US$16.64 billion, while diluted earnings per share climbed by 6% to US$3.49.
Schlumberger’s report showed revenue climbed by 10% to US$9.16 billion, with diluted earnings per share up 6% at US$0.83.
Procter & Gamble Co (NYSE:PG, ETR:PRG) shares were flat in the meantime as its first-quarter results showed a 1% drop in revenue to US$21.7 billion and 12% fall in diluted earnings per share to US$1.61.
Elsewhere, Netflix Inc (NASDAQ:NFLX, ETR:NFC) shares were up more than 6% in pre-market trading after the streaming firm posted expectation-beating results on Thursday.
Revenue of US$9.83 billion outdid expectations for US$9.77 billion, while per-share earnings of US$5.40 also outdid anticipations for US$5.12
This came on the back of a 35% jump in ad-tier memberships between the second and third quarters.