Nasdaq Index Today: Netflix Rally Leads Gains as Dow Falters on AmEx Slump

Nasdaq Rises as Netflix Drives Gains Amid Mixed Earnings Reports

The Nasdaq Composite climbed on Friday, buoyed by a sharp rise in Netflix shares after the company’s positive earnings report. As a result, the tech-heavy index advanced 0.6%, while the S&P 500 gained 0.3%. However, the Dow Jones Industrial Average lagged, dropping 0.2%, or 75 points. The three major indexes were heading for their sixth consecutive weekly gains, the longest winning streak for both the S&P 500 and the Dow in 2024. For the week, the Nasdaq and S&P 500 are up about 0.6%, with the Dow rising 0.5%.

Netflix Surges After Earnings Beat

Netflix saw its stock jump 11% following better-than-expected third-quarter results. The streaming giant reported a 35% increase in ad-tier memberships compared to the previous quarter, which caught the attention of analysts. JPMorgan’s Doug Anmuth reiterated his bullish stance on the stock, citing Netflix’s strong global reach and engagement, and increased his price target, which suggests over 23% upside potential. Morgan Stanley analyst Benjamin Swinburne also upgraded his price target, reflecting a 20% potential rise. Netflix shares have surged more than 41% year to date.

American Express Slumps After Disappointing Revenue

While Netflix thrived, American Express (AmEx) struggled. Despite a five-week winning streak, AmEx’s stock fell nearly 5% on Friday, making it one of the worst performers in the Dow and S&P 500. This decline followed a revenue miss for the third quarter, putting the stock on track for its first weekly loss in six weeks. Shares were down 1.5% for the week, jeopardizing its recent rally.

Sector Performance Mixed Amid Earnings Season

Across sectors, performance was mixed as earnings reports rolled in. The Consumer Discretionary sector gained 0.45%, while Consumer Staples rose 0.21%. The Technology sector was up 0.51%, with Communication Services leading the pack, climbing 1.11%. In contrast, Energy suffered, dropping 0.94% as oil prices slid. The Financials sector saw a modest decline of 0.14%, while Industrials and Materials rose slightly by 0.11% and 0.31%, respectively. Real Estate also advanced by 0.38%, while Utilities posted a modest gain of 0.32%.

Bitcoin and Gold Rally to Multi-Month Highs

Bitcoin climbed as high as $68,347 on Friday, marking a 7% gain for the week and its best weekly performance since mid-September. Ether also rose more than 6% for the week, while Coinbase soared 19%.

Meanwhile, gold futures reached a new intraday all-time high of $2,732.3, rising 1.8% for the week. The VanEck Gold Miners ETF (GDX) also gained more than 5%, hitting its highest level since September 2020.

Market Forecast: Bullish Momentum Persists

Looking ahead, market sentiment appears bullish, with the Nasdaq and S&P 500 extending their winning streaks. Despite mixed earnings, strong performances from key stocks like Netflix and the upward trend in gold and cryptocurrencies suggest further gains. Investors should watch for potential volatility near the upcoming U.S. election, but the market could remain strong in the short term.