The U.S. market edged higher before the market on Wednesday, focusing on streaming giant Netflix's overnight post-market surge
(Morning News) ● Futures of major stock indexes on Wall Street in the United States edged higher on Wednesday ahead of the results of several giants.
● Wednesday night's upcoming results include: Procter & Gamble before the market opens, and Tesla and International Business Machines Corporation (International Business Machines, referred to as IBM) after the close. September housing starts and building permits data in the United States will also be released on the same night.
● At the 7 o'clock deadline, S & P 500 futures edged up 3.70 points or 0.10% at 3,723.70 points; Nasdaq 100 futures were 20.00 points or 0.18% at 11,167.70 points; Dow Jones index futures were 10.40 points at 30,534.20 points.
● U.S. stocks closed higher for the second day overnight on Tuesday (18th). Goldman Sachs and Lockheed Martin (Lockheed Martin) released strong quarterly results overnight, allaying market investors' concerns about the weakness of the stock market in the earnings season.
● The S & P 500 rose 42.03 points overnight to close at 3,719.98. The heavyweight Dow rose 337.98 points and closed at 30,523.80. The tech-heavy Nasdaq 100 also rose 0.77% or 85.20 points to close at 11,147.74.
● U.S. stocks were active overnight, with total volume on the exchange 11.6 billion 70 million shares, roughly the same as the average volume of 11.6 billion 20 million shares over the past 20 days.Pre-market trading highlights:
● Wall Street analysts generally predict that electric vehicle giant Tesla will post a quarterly earnings per share of $1 and a turnover of $21.9 billion 60 million. Tesla shares rose $2.16 in pre-market trading Wednesday night to $222.35 at the deadline.
● Procter & Gamble's higher pricing offset the impact of reduced demand for its products, allowing the company to just report quarterly earnings and turnover, both exceeding analysts' consensus forecasts. Procter & Gamble earned $1.57 per share and turnover 20.6 billion $10 million. Shares continued to rise in premarket trading on Wednesday night, at $130.75, up from $2.38 at the deadline.
● Wall Street analysts predict that after the market closes Wednesday night, International Business Machines Corporation (IBM) will report quarterly earnings of $1.78 per share and turnover of $13.5 billion 50 million. IBM shares started at $0.26 in premarket trading and were $123.20 at the deadline.
● United Airlines reported better results than market analysts had predicted overnight, driving the company's stock price up nearly 7% after hours. The stock continued to rise before the market on Wednesday night, at the deadline of $39.51, from $2.26.
● Wednesday we take a look at why streaming giant Netflix surged after the overnight market. Pre-market shares continued to rise by $32.93, at the deadline of $273.79.
● Pre-market active stocks In order: Carnival Corp, Tesla, Netflix, Apple and Amazon. Shares of all five active stocks were up at the time of writing.Most of Netflix's net user growth in the quarter came from the Asia-Pacific region, with a total of 1.43 million users. The U.S. and Canada were Netflix's smallest growth regions, adding only 10,000 net users. (Reuters) Netflix (NASDAQ: NFLX)
Streaming media giant Netflix not only announced better-than-expected turnover and profit figures after the overnight market closed, but company executives also revealed at the press conference that Netflix's global net subscribers increased by 2.41 million, more than double the forecast of the previous quarter. The good news immediately sent Netflix's stock price soaring by more than 14% overnight.
Netflix also predicted that in the next fiscal year, Quarter 1, they will attract another 4.5 million users. "We are finally past a period of'quarterly contraction, '" co-CEO Reed Hastings said at the launch. "Now it's time for the company to continue the momentum by strengthening its content, marketing and low-price advertising programs."
According to Netflix's earnings report, Netflix's third-quarter earnings per share were $3.10 and turnover was $7.9 billion 30 million. Analysts previously collected by Refinitiv estimated earnings per share at $2.13 and turnover was $7.8 billion 37 million. However, for the fourth quarter, Netflix predicts that the company's performance will be subject to currency pressure such as the rise in the US dollar, resulting in turnover to continue to remain at the level of 7.8 billion US dollars.
Most of Netflix's net user growth in the quarter was mainly from the Asia-Pacific region, with a total of 1.43 million users. The United States and Canada were the regions with the smallest growth for Netflix, adding only 10,000 net subscribers.
The streaming giant has been trying to drive user growth after a sudden decline in subscribers in the first half of the year. At that time, Netflix's user base suddenly and significantly reduced by 1.2 million due to the increasingly fierce competition in online video, which surprised the market and caused the stock price to drop 59.68% since the beginning of the year. In addition to driving user growth, Netflix also officially announced overnight that it will start cracking down on password sharing next year. However, in the initial stage, they will allow people who borrow accounts to open their own accounts. Netflix will also allow users to help friends or family members pay their user fees by opening sub-accounts.
Of Tipranks' 30 analysts, 13 have a "buy" rating on Netflix, 12 have a "hold" rating on the stock, and five have a "sell" rating on the stock, with an average one-year price target of $269.52. At the overnight closing price of $240.86, analysts believe the stock has 11.90% upside potential.