© Reuters
Jeffrey Smith
Investing.com — Netflix (NASDAQ:), Johnson & Johnson (NYSE:), and Goldman Sachs (NYSE:) Report Earnings, Building on the Good Vibe Created So Far by Other Banking Sectors and pepsico (Nasdaq:). Industrial production data will be submitted, as will the National Home Builders Association’s monthly survey. The pound and gilt take a breather amid uncertainty over whether the Bank of England will proceed with ‘quantitative tightening’, while European gas prices fell as the EU reached its storage target early . Here’s what you need to know about the financial markets on Tuesday, October 18th.
1. Netflix aims to extend losing streak
Post-close earnings for the three months through September are looking to break a two-quarter losing streak.
This year’s relegation marks a sudden shift in market sentiment for the long-term growth stock, with the streaming giant forecasting a net gain of 1 million subscribers, buoyed by a better quarter of new content. .
The numbers would reveal just how loyal the customer base has been after a series of price increases. suggests that
2. The UK market is calm after the storm. Confusion about BoE QT
Britain’s financial markets are calming down after new Chancellor Jeremy Hunt broke with Prime Minister Liz Truss’ economic strategy and withdrew nearly all of her proposed tax cuts.
The collapse of British government bonds triggered by the Truss plan has sent ripples through global financial markets, especially after the Bank of England warned of “significant risks to the UK’s financial stability”. Gilts rebounded strongly on Monday, Tuesday after the Financial Times reported that banks would delay the start of “quantitative tightening” due to concerns over the resilience of the market.
Newswires later quoted a bank spokesperson as calling the FT’s report “inaccurate.”
3. Stocks Rise, Rebound Continues
U.S. stocks rose at Monday’s open, set on relief by developments in the U.K. and generally strong third-quarter earnings so far out of major financial sectors.
By 06:20 ET (10:20 GMT), it was up 394 points (1.3%), up 1.5%, up 1.7%. The Nasdaq outperformed on Monday with his massive gain of 3.4%, the Dow up about 1.5% and the S&P up his 1.8%.
Bank of America (NYSE:), Bank of New York Mellon (NYSE:), Charles Schwab (NYSE:) All comfortably exceeded expectations in Monday’s update, encouraging hopes that the trick can be repeated before today’s opening, but the news could be dominated by an apparent restructuring plan. .
Also, the early report state street (NYSE:), Hasbro (NASDAQ:), and 9:15 a.m. ET in September, the numbers appear at the top of the data calendar, with monthly harrowing stories from the survey.
Intel (NASDAQ:) and Microsoft (NASDAQ:) are other companies in the spotlight following reports of cutbacks in Intel’s ambitions for spinoffs and job cuts at the software giant.
4. Russia continues to attack Ukrainian power plants
According to President Volodymyr Zelensky, Russia has continued to attack Ukraine’s power sector with missiles and Iranian-made kamikaze drones, knocking out about 30% of the country’s energy supply.
The Kremlin this week abandoned any pretense of targeting military infrastructure as Russia’s new military commander, Sergey Slovikin, adopted similar tactics against rebels in Syria’s Idlib province.
Iran denies that it was sending weapons to Russia, even though photographic evidence of shrapnel fragments appears to leave no doubt as to their origin. Speculation is rife that the ban on weapons supplies to Ukraine may be eased.
Elsewhere in Russia, the Kremlin has been stripped exxon mobil (NYSE:) Investing in the Sakhalin-1 offshore field, a project that has come to symbolize the resurgence of Russia’s oil industry after the collapse of the Soviet Union.
5. Oil stabilizes near two-week lows as European gas prices plummet
Crude oil prices fell to a two-week low as concerns continued about the outlook for global demand following new signs of a slowdown in major economies.
By 6:30 a.m. ET, futures had fallen 0.1% to $84.42 a barrel and futures had fallen slightly to $91.61.
Despite better news on the energy supply front in the past 24 hours, closely monitored sentiment indicators for the German economy suggested a bleak outlook. German Chancellor Olaf Scholz said all three reactors, which are currently scheduled to be shut down in December, will be operational until at least April. Moreover, industry data showed that the EU, and especially Germany, achieved their gas storage targets ahead of schedule. It fell about 10% to a four-month low.
