• US Jobless Claims remain elevated
• US Retail Sales above expectations
• Netflix (NFLX.US) will report Q2 results after the closing bell
• US Retail Sales above expectations
• Netflix (NFLX.US) will report Q2 results after the closing bell
US indices opened lower after disappointing jobless claims report which showed that 1.3 million people filed for unemployment benefits last week. Today's reading came in above analysts' estimates of 1.25 million and is suggesting that the improvement in the U.S. labor market may be running out of steam. Meantime US retail sales jumped 7.5% in June, well above Wall Street forecasts of 5% as domestic trade continued to recover from a slump in April due to the coronavirus lockdown. Also simmering tensions between the Washington and Beijing weighed on investors moods, after US Secretary of State Mike Pompeo said that Washington would impose visa restrictions on Chinese firms like Huawei Technologies, accusing it of facilitating human-rights violations, while further sanctions on top Chinese officials are also on the table over Beijing's handling of Hong Kong. Also rising numbers of new coronavirus infections is also worrying investors, particularly in the US, Australia, and Japan. On the earnings front Morgan Stanley, Bank of America and J&J posted better than expected quarterly results. Netflix is due to report after the market close.
S&P500 (US500) failed to break above the 3240.8 pts resistance and pullback started today. Should downbeat moods prevail, support at 3172.9 pts may come into play. Source: xStation5Netflix Inc. (NFLX.US) will post its quarterly results today after the market close. Company’s stock gained approximately 55% so far in 2020, as users have sharply increased their viewing of streaming TV and movie content due to the pandemic.
Wall Street is expecting higher earnings per share (EPS) and rising number of subscribers for the quarter, and for all of FY 2020. Netflix revenue is also expected to increase, though it will be slower than recent quarters. Investors will mainly focus on the total paid streaming subscribers numbers. Company need to expand its subscriber base in order to maintain growth in EPS and revenue. According to the analysts' estimates, in the second quarter the total paid subscriber growth should be the strongest in the past five quarters.
Paid subscriptions will be the main figure to look for. Increasing paid subscriptions globally, in the U.S. and abroad, is key to increasing profits. That's because the company's ability to raise prices has been constrained due to the growth of new streaming rivals. Source: XTB research, Bloomberg.
Netflix Inc. (NFLX.US) stock price bounced of the local support at $490.50 per share. As long as the price sits above it, the upward move toward ATH at $577.08 per share looks to be more probable. Source: xStation5
Morgan Stanley (MS.US) – reported earnings of $1.96 per share in the second quarter, well above analysts' expectations of $1.12 a share. Revenue also came in above market estimates. Company's net revenue and net income rose sharply, thanks to strong trading results.
Bank of America (BAC.US) posted its quarterly earnings of 37 cents per share, well above market expectations of 10 cents a share. Revenue also beat market estimates. Bank put aside $4 billion to its loan loss reserves, bringing the total to $5.1 billion, joining other banks in preparing for a jump in credit losses due to the pandemic.
Johnson & Johnson (JNJ.US) reported quarterly earnings of $1.67 per share which came in 18 cents a share above expectations. Revenue was above estimates as well. Strong results were boosted by continued growth in its pharmaceutical business. Company also raised its full-year outlook.
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