S&P 500 futures have risen by 10 points, and Nasdaq 100 futures are up by 100 points, reflecting a positive start. However, Dow futures have dropped by 58 points.
The rise in S&P 500 and Nasdaq 100 futures is driven by positive earnings from Netflix (NFLX, Financial). In contrast, negative earnings results from American Express (AXP, Financial) and Procter & Gamble (PG, Financial) have impacted Dow futures.
Treasury yields show little change. The 10-year yield has increased slightly by one basis point to 3.98%, while the 2-year yield remains steady at 3.98%.
Today's economic updates include September's Housing Starts and Building Permits, scheduled for release at 8:30 ET.
Today's News
Netflix (NFLX, Financial) shares surged 5% following a robust third quarter report that exceeded expectations, showcasing a 15% rise in revenue and a notable 29.6% operating income margin. The streaming giant's global paid memberships grew by 14.4% year-over-year, and free cash flow increased by 16% to $2.2 billion. Consequently, Netflix has raised its full-year free cash flow guidance to $6.0 billion-$6.5 billion and anticipates a 15% revenue growth for Q4, with a 22% operating margin. Looking ahead, Netflix projects 2024 revenue growth at the high end of 14%-15% with a 27% operating margin, and expects FY2025 revenue to reach $43 billion-$44 billion with a 28% margin.
CVS Health (CVS, Financial) experienced an 8% drop in shares after announcing a new chief executive and releasing preliminary Q3 financial results that fell short of Wall Street's expectations. David Joyner, a longtime executive, has been appointed as the new CEO, replacing Karen Lynch. The leadership change and financial shortfall have impacted investor confidence, leading to a decline in CVS's stock value. Rival pharmacy chain Walgreens Boots Alliance (WBA, Financial) also saw a 2% dip in its shares.
Apple (AAPL, Financial) saw a 1.8% increase in premarket trading as iPhone 16 sales in China rose 20% year-over-year in the first three weeks, signaling a strong growth trajectory. The higher-end Pro and Pro Max models performed exceptionally well, with sales up 44% compared to last year's iPhone 15. This surge in sales suggests a positive outlook for Apple's market presence in China, driven by the latest iPhone models.
American Express (AXP, Financial) reported a 1.3% decline in premarket trading after revising its full-year revenue guidance, although it raised its earnings guidance for 2024. The credit card company increased its EPS forecast to $13.75 - $14.05, surpassing the consensus estimate, while adjusting its revenue growth outlook to approximately 9%, down from the previous 9%-11% range. Despite the revenue guidance cut, Q3 results showed a 5% year-over-year rise in network volume.
Energy Transfer (ET, Financial) has entered a preliminary agreement with a consortium led by KBR and Technip Energies for constructing its Lake Charles LNG plant in Louisiana. This contract is contingent upon a final investment decision, marking a significant step in the project's development. Energy Transfer has faced challenges in securing customer commitments and regulatory approvals, but this contract could pave the way for future progress.
Procter & Gamble (PG, Financial) shares dipped slightly in premarket trading following a decline in total sales for the fiscal first quarter, overshadowed by increased profits and higher organic sales. The company reported a 0.6% drop in total sales to $21.74 billion, missing Wall Street's expectations by $240 million. However, adjusted profit per share rose to $1.93, up 5% from the previous year.
Intel (INTC, Financial) is seeking to raise capital for its Altera programmable chip unit by attracting minority partners. The company is reportedly looking for investors to value Altera at $17 billion, with the possibility of selling a majority stake. This strategic move comes as Intel aims to bolster its position in high-performance communications and data center applications.
Nokia (NOK, Financial) is reportedly cutting nearly 2,000 jobs in China as part of its cost-cutting measures. The company plans to reduce its workforce by up to 14,000 positions globally to achieve savings of €800 million to €1.2 billion by 2026. These job cuts align with Nokia's broader strategy to streamline operations and enhance financial performance.
GuruFocus Stock Analysis
- Apple Introduces Business Caller ID to Enhance User Privacy and Block Spam by Nauman Khan
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- Amazon Invests $500 Million in Nuclear Energy, Boosting Green Commitments by Nauman Khan
- Dow Jones Soars to New High as Morgan Stanley and Small-Cap Stocks Lead the Rally by Muslim Farooque
