US OPEN: Indices open lower to start a week with the Fed in spotlight

• Media Stocks Fall on Proposed Movie Tariffs

• Netflix Australia Revenue Soars While Tax Obligations Minimized

• Berkshire Hathaway shares dropped following Warren Buffett's announcement that he will resign as CEO at year-end

• Uber has terminated discussions to transition approximately 5,000 electric vehicles

US indices are showing negative performance today. The Dow Jones (US30) is down 0.53% to 41,189, while the S&P 500 (US500) has declined 0.71% to 5,664.5 and the Nasdaq (US2000) is off 0.88% to 2,008.3. The tech-heavy US100 index has fallen 0.91% to 19,998.95. The VIX "fear index" is up 2.67% to 23.03, indicating increased market anxiety.

European indices are showing mixed performance today, with Polish W20 leading declines at -1.29% to 2,750.6. The Netherlands' NED25 is down 0.74% to 891.35, while France's FRA40 has slipped 0.61% to 7,684.2. Other European markets showing losses include the Eurozone's EU50 (-0.28% to 5,234.6) and Italy's ITA40 (-0.25% to 37,830).

Several bright spots in Europe include Germany's DE40 gaining 0.61% to 23,390.3, Austria's AUT20 advancing 1.10% to 4,060, and Switzerland's SUI20 up 0.14% to 12,241. Spain's SPA35 is also positive with a gain of 0.14% to 13,494, while the UK's UK100 remains flat at 0.00%.

Current volatility observed on Wall Street. Source: xStation

The Nasdaq 100, represented by US100, is trading around the 20,000 level, which aligns with the 38.2% Fibonacci retracement. Bulls will aim to retest the 200- and 100-day SMAs, while bears will look to push the index below 19,195 — a key level that previously sparked an uptrend — with a target near the 61.8% Fibonacci retracement. The RSI remains above the 48.5 threshold, a level that has historically signaled a return to bullish momentum when breached. Meanwhile, the MACD is beginning to tighten, which may indicate caution for bullish traders. Source: xStation 

Market News

• Media Stocks Fall on Proposed Movie Tariffs. Entertainment company shares dropped after President Trump called for a 100% tariff on foreign-produced movies. Warner Bros. Discovery fell 2.8%, with its "Minecraft Movie" (partly filmed in New Zealand and Canada) potentially affected. Netflix shares declined 3.7%, while Amazon, Disney, and Paramount Global each lost 1.5% or more. The Commerce Department and U.S. Trade Representative have been authorized to begin implementing tariffs on movies produced in "Foreign Lands," potentially expanding Trump's trade policies to non-physical goods. Industry hubs like London, which offers tax breaks and infrastructure including large soundstages, could be significantly impacted.

• Netflix Australia Revenue Soars While Tax Obligations Minimized. Netflix reported a significant increase in Australian revenue to $1.3 billion, with most funds sent overseas to reduce local tax obligations. The streaming giant, with an estimated 6.2 million Australian subscribers, posted a modest $23.3 million profit in 2024, up slightly from $22 million on $1.1 billion revenue the previous year. Netflix Australia's thin 1.7% profit margin stems from $1.2 billion paid in "distribution fees" to other Netflix Group companies, effectively shifting 93% of local revenue abroad. The company paid just $10.1 million in income tax despite dominating the Australian streaming market with presence in 77% of households, compared to Disney+ (40%), Amazon Prime Video (33%), and Stan (26%). Globally, Netflix earned $60 billion in revenue with a 26.7% operating margin in 2024.

• Berkshire Hathaway shares dropped 2.6% following Warren Buffett's announcement that he will resign as CEO at year-end, with Greg Abel positioned to take over pending board approval. The company reported earnings Friday that missed analyst expectations. CFRA Research maintains a Hold rating with a $535 price target, noting 2024 will likely be transitional with Abel expected to implement a more hands-on management style than Buffett's. Bloomberg Intelligence analysts believe Abel will maintain Berkshire's core ethos while potentially bringing fresh approaches to capital management.

• Marvel's "Thunderbolts" Tops Box Office with Modest Opening. Disney's latest Marvel Cinematic Universe film "Thunderbolts" claimed the top spot at the weekend box office with $76 million in domestic ticket sales, matching Disney's forecast but falling short of industry projections of up to $90 million. The $180 million production stars Florence Pugh and Sebastian Stan as antiheroes opposing a rogue intelligence official played by Julia Louis-Dreyfus. Its opening performance mirrored February's "Captain America: Brave New World," though better critical reviews may boost long-term prospects. Marvel films, excluding last year's $1.34 billion "Deadpool & Wolverine," have struggled to match their previous heights when "Avengers: Endgame" generated $2.8 billion globally in 2018. "Thunderbolts" is the second of three Marvel releases scheduled this year, preceding July's "The Fantastic Four: First Steps."

• Uber has terminated discussions to transition approximately 5,000 electric vehicles from Gensol Engineering-owned BluSmart to its platform, according to Mint. The negotiations, which began in March, reportedly ended due to Uber's concerns that the asking price didn't adequately account for the high depreciation rate of electric vehicles. Neither company responded to queries about the canceled talks. Meanwhile, BofA analyst Justin Post raised Uber's price target from $95 to $96 while maintaining a Buy rating ahead of the company's May 7 earnings report. The analyst raised Q1 estimates for bookings, revenue, and EBITDA to $43.5 billion, $11.73 billion, and $1.89 billion respectively, exceeding Street expectations, and anticipates positive commentary on Uber's Austin Waymo launch.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP