Nasdaq Futures Rise For A Third Day As Better-Than-Expected Netflix Results Keep Tech Gains Going – CNBC

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

Futures tied to the Nasdaq 100 added 1.2%. Dow Jones Industrial Average futures gained 0.4%, and S&P 500 futures rose 0.7%.

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

The extended trading moves came after Netflix reported earnings and revenue that beat estimates as well as strong subscriber growth for the third quarter. Shares surged as much as 14% in extended trading.

Some on Wall Street are resetting their earnings projections lower as investors worry about a recession. Gene Goldman, chief investment officer at Cetera Investment Management, said that while an economic recession could be mild, the market could struggle with those downward revisions.

“Earnings estimates are a bit 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. Because earnings drive stock prices, they could pressure markets for some time.”

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

In economic data, investors are looking forward to 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 come out as well.

CNBC Pro: Goldman Sachs outlines four economic scenarios and predicts how gold will perform in each

It’s been a choppy year for gold, with the precious metal “torn between growth and inflation risks and higher real rates and the strong dollar,” Goldman analysts wrote in an Oct. 11 note.

“In our view, there remains a lot of uncertainty around the future path of U.S. inflation, growth, rates and the central bank (CB)’s reaction functions.”

Goldman ran four different economic scenarios, and predicted where gold prices could end up in each case.

CNBC Pro subscribers can read more here.

— Weizhen Tan

U.S. crude futures move up $1 per barrel on expectations that Biden will release oil from Strategic Petroleum Reserve

Futures of West Texas Intermediate crude moved up around $1, or 1.33% and futures of Brent crude rose $0.83, or 0.92% as the Biden administration is expected to release more oil from the U.S. Strategic Petroleum Reserve.

The plan could be announced as early as Wednesday, sources told CNBC.

The move aims to extend the current SPR delivery program, which began this spring, through December, the sources said.

–Kayla Tausche, Jihye Lee

Company earnings are beating expectations

Of the 9.15% of S&P 500 companies that have reported earnings so far this season, 70% of them have posted positive surprises, according to data from FactSet.

Earnings expectations have been lowered considerably and the market is braced for a good amount of negative news in earnings season, Yung-Yu Ma, BMO Wealth Management chief investment strategist, told CNBC.

However, he added, “to the extent that that doesn’t actually transpire, that we get more of a nuanced message that companies on average are doing okay, okay is still pretty good in an environment where the market is braced for volatility, turmoil, slowing growth, declines and a challenging environment.”

— Tanaya Macheel

Netflix pops after hours on earnings

Shares of the streaming giant Netflix jumped in extended trading after it reported quarterly results, including the addition of 2.41 million net global subscribers, which is more than twice what it projected a quarter ago.

Stock futures open higher Tuesday night

Stock futures opened higher Tuesday evening after the major averaged posted a second straight day of gains and Netflix reported strong earnings after the bell.

Futures tied to the Dow Jones Industrial Average rose 124 points, or 0.4%. S&P 500 futures gained 0.7% and Nasdaq 100 futures jumped 1.2%.

— Tanaya Macheel

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