Nasdaq futures rise for a third day as better-than-expected Netflix results keep tech gains going

Nasdaq futures rose Tuesday night after major averages posted a second straight day of gains, and Netflix reported strong earnings after the bell.

Futures linked to the Nasdaq 100 added 1.19%. Dow Jones Industrial Average futures gained 165 points, or 0.54%, and S&P 500 futures rose 0.8%.

All three major stock averages ended the regular trading day higher as earnings reports spurred a choppy market. The Dow Jones closed up about 337 points, while the S&P 500 gained 1.1% and the tech-heavy Nasdaq Composite added 0.9%.

The extended trade moves came after Netflix reported better-than-expected earnings and revenue, as well as strong subscriber growth in the third quarter. Shares jumped as much as 14% in extended trading.

Some on Wall Street are revising their earnings projections down as investors worry about a recession. Gene Goldman, chief investment officer at Cetera Investment Management, said while an economic downturn could be mild, the market could struggle with these downgrades.

“Earnings estimates are a little too high for the S&P 500 at 7% to 9% per year going forward,” he said. “Slowing economic growth and Fed rate hikes will likely put downward pressure on earnings. Since earnings drive stock prices, they could put pressure on markets for some time. “

Tech earnings will be in full swing next week, but IBM and Tesla are on deck to report on Wednesday. Social media company Snap will report later in the week.

In economic data, investors are eagerly awaiting housing starts on Wednesday. The Federal Reserve’s so-called Beige Book, the central bank’s report on the current state of economic conditions, will also be released.

Leave a Comment

Your email address will not be published. Required fields are marked *