U.S. stock futures showed little movement on Friday, as investors digested a mix of corporate earnings, fresh economic data from China, and volatile commodity prices. While Netflix (NASDAQ) reported stellar profits, concerns over China’s economic slowdown and fluctuating oil markets weighed on sentiment.
Muted Futures As Markets Search For Direction
After a choppy session on Thursday, U.S. futures remained flat. As of 03:31 ET (07:31 GMT), Dow futures dipped 0.1%, while S&P 500 futures edged up 0.1%. Meanwhile, Nasdaq 100 futures rose 0.2%, reflecting some tech-sector optimism.
Healthcare stocks lagged after Elevance Health reduced its annual profit outlook, dragging down peers like Molina Healthcare (NYSE) and Centene (NYSE). On the other hand, chipmakers such as Micron Technology (NASDAQ) and Broadcom (NASDAQ) gained following upbeat reports from Taiwan Semiconductor Manufacturing Co.
Netflix Smashes Expectations with Record Profits
Netflix reported its most profitable quarter yet, underscoring a strategic pivot toward profitability over subscriber growth. The streaming giant added 5.07 million subscribers, beating expectations but falling short of last year’s 8.76 million surge, driven largely by its 2023 crackdown on password sharing.
A notable trend: More than half of the new users opted for Netflix’s ad-supported plan, indicating solid performance in this emerging segment. Earnings per share hit $5.40, with revenue climbing to $9.83 billion, both above analysts’ forecasts.
Looking ahead, Netflix announced plans to raise subscription prices in key markets like Italy and Spain to sustain revenue growth, following similar moves worldwide.
In the latest economic update, China reported a 4.6% GDP growth rate for the third quarter, the slowest pace in 18 months. This figure aligns with analysts’ expectations but highlights Beijing’s struggle to revive the economy amid deflationary trends and a sluggish real estate sector.
In response, the People’s Bank of China rolled out new lending programs to support stock buybacks, helping Chinese equities recover from early-session losses. However, concerns persist, with China’s GDP growth now below its annual target of 5%.
Safe-haven demand continues to surge, pushing gold prices to new heights. In Asian trade on Friday, spot gold rose 0.4% to $2,706 per troy ounce, while December gold futures climbed 0.5% to $2,720.15.
Bitcoin also benefited from risk-off sentiment, gaining alongside gold as investors sought alternative assets amid global uncertainties.
Oil Prices Climb, but Weekly Loss Looms
Oil prices edged higher on Friday, with Brent crude rising 0.3% to $74.66 per barrel and U.S. crude futures (WTI) increasing by 0.3% to $70.89. Despite the gains, both benchmarks remain on track for their steepest weekly decline since early September, driven by weak demand forecasts from OPEC and the International Energy Agency.
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China’s sluggish economic performance further dampens global oil demand, although a recent drawdown in U.S. inventories offered some short-term support to prices.
As investors weigh mixed signals from corporate earnings, China’s economic slowdown, and commodity price movements, U.S. markets appear to be searching for direction. Netflix’s strong results provide some optimism, but broader concerns about economic growth, both domestically and globally, keep markets on edge heading into the weekend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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