Nasdaq 100, Dow Jones, S&P 500 News: Netflix Earnings Highly Anticipated Amid Market Optimism

Wall Street Optimism on Strong Earnings

Wall Street’s major indexes are higher at the mid-session on Thursday, spurred by strong earnings reports from various sectors. Megacap stocks such as Meta Platforms led the gains, jumping 2.7% after an analyst upgrade, reflecting broader market confidence. However, there is an air of caution ahead of Netflix earnings, which will be reported after the close.

At 16:00 GMT, the Dow Jones Industrial Average is trading 37864.07, up 110.76 or +0.29%. The S&P 500 Index is at 5034.35, up 12.14 or +0.24% and the Nasdaq 100 Index is trading 15713.84, up 30.47 or +0.19%.

Earnings Highlights

Several companies announced positive earnings surprises, adding to the bullish sentiment. Genuine Parts led the S&P 500 with a 12.9% surge after increasing its 2024 profit forecast. Elevance Health grew by 3.9% on better-than-expected quarterly results and an improved annual outlook. Additionally, D.R. Horton’s shares climbed 2.4% as it raised its revenue forecasts amid a tight housing market.

Market Analysis and Fed Insights

Despite recent volatility, including the S&P 500 and Nasdaq’s previous day’s losses, the market responded positively to earnings reports. Phil Blancato from Ladenburg Thalmann Asset Management highlighted the importance of substantive earnings growth at current market valuations. Meanwhile, New York Fed President John Williams indicated no immediate need to lower interest rates, supporting a stable economic outlook.

Employment and Sector Movements

The labor market remains robust, with unemployment claims holding steady. All 11 major sectors of the S&P 500 were up, led by communication services. This sector performance underlines the market’s resilience and investor confidence in ongoing economic stability.

Netflix Earnings Anticipation

Investors are particularly focused on Netflix, which is set to release its earnings after the market closes. The company is expected to post strong results with earnings per share of $4.52 and revenue of $9.28 billion. Analysts and investors are keen to understand how Netflix’s strategic shifts, including its push into video games and live sports, are enhancing its profitability.

Short-Term Forecast

Given the robust earnings reports and stable economic indicators, the outlook is optimistic despite a dismal chart pattern. However, investors should watch for sustained earnings growth and market reactions to further Federal Reserve commentary. Netflix’s upcoming report could significantly influence market sentiment, potentially driving further gains if its results meet or exceed expectations.

Technical Analysis

E-mini Nasdaq-100 Index futures are trying to recover from yesterday’s steep sell-off. However, the chart pattern suggests a sustained move could be difficult with the intermediate trend now lower following the recent breakdown under the 50-day moving average at 18243.67. This is now new resistance.

Sustained downside momentum could put the 200-day moving average at 16753.62 on the radar.