Earnings Recap: Netflix and Intuitive Surgical Boost Nasdaq 100 and S&P 500

US Stocks Surge to Record Highs on Solid Earnings Reports

US stocks closed at record highs on Friday, with the S&P 500, Nasdaq 100, and Dow Jones Industrial Average all posting gains for the sixth consecutive week. Strong third-quarter earnings reports from major companies like Netflix and Intuitive Surgical fueled optimism, boosting investor sentiment and driving the indices to new heights.

Both Netflix and Intuitive Surgical saw their shares soar by more than 10% after reporting better-than-expected profits and revenues. With 13% of S&P 500 companies already having reported earnings, 82% have exceeded profit expectations, adding momentum to the market’s upward trend.

Netflix and Intuitive Surgical Lead the Charge

Netflix was a standout in Friday’s session, adding 5.1 million subscribers in the third quarter and beating Wall Street’s revenue and profit estimates. Its stock surged by 7% in early trading, reaching near-record highs.

Intuitive Surgical also impressed, surpassing analyst expectations on both revenue and profit, which led to a 7% jump in its stock price. These strong performances contributed to the broader market rally, as investors were encouraged by the robust earnings growth from these tech-driven companies.

Procter & Gamble Struggles Amid Weak Consumer Demand

In contrast to the upbeat reports from Netflix and Intuitive Surgical, Procter & Gamble (P&G) reported a second consecutive quarter of declining sales, largely due to weaker demand for its premium products in the US and China. The company’s CFO, Andre Schulten, reassured investors that P&G remains resilient, though the slowdown in North American organic sales growth—from 7% to 4%—raised concerns. In China, the company faces ongoing challenges from a sluggish economy and consumer demand, particularly in its beauty and baby-care segments.

American Express Beats Profit Expectations but Faces Headwinds

American Express (AXP) also reported strong third-quarter earnings, with profits rising to $2.51 billion, beating analyst forecasts. The company benefited from disciplined expense management and continued spending by its affluent customer base, which helped offset broader concerns about inflation and economic uncertainty. Despite its solid earnings, AmEx shares fell nearly 5% as investors weighed potential future headwinds, including slower revenue growth and ongoing inflationary pressures.

Market Outlook: Cautious Optimism Amid Earnings Season

As earnings season continues, with more than 80 S&P 500 companies set to report next week, including Coca-Cola, Tesla, and UPS, market optimism remains tempered by concerns about inflation and geopolitical instability.

While strong earnings from tech and healthcare companies have provided a solid foundation for recent market gains, consumer sentiment and broader economic trends will be key to sustaining this momentum.

Traders will be closely watching for further earnings surprises to drive the next leg of the market rally.