US OPEN: Netflix in Wall Street’s Spotlight

The U.S. stock market is entering a critical phase of the earnings season. The main indices—S&P 500, Dow Jones, and Nasdaq—remain close to all-time highs, but investors are growing increasingly cautious about further gains. After a strong rally in recent months, the market needs confirmation that fundamentals are keeping pace with valuations.

Today, Netflix takes center stage as it is set to release its quarterly results after the session. The company is seen as a barometer of sentiment in the tech and consumer sectors. Investors expect growth in subscriber numbers (especially outside the U.S.), higher revenues, and improved profitability, particularly following its strategies to monetize account sharing and expand its advertising segment.

A report meeting or exceeding expectations could support the Nasdaq and sustain optimism across the broader market. On the other hand, any disappointment—especially regarding user growth dynamics or operating margins—could trigger a correction across the Big Tech segment, which has been the primary driver of recent gains.

In the shadow of Netflix, other major companies deliver positive reports—General Motors raised its full-year profit guidance, and Coca-Cola beat expectations thanks to sustained pricing power and steady demand. These results confirm that the American consumer remains resilient despite uncertainties related to inflation and high interest rates.

Another factor affecting sentiment is the partial U.S. government shutdown, which delays the release of key macroeconomic data. As a result, investors are increasingly relying on company earnings reports as a primary source of information about the real state of the economy. In this context, Friday’s CPI inflation data gains additional importance, potentially impacting expectations around Fed policy.

US500 (H1 Timeframe)

US500 futures hold a bullish trend, consolidating within a narrow range after a strong upward move in mid-October. Current levels suggest the market is awaiting further catalysts, and the arrangement of EMA (25, 50, and 100) moving averages in a classic bullish pattern confirms the buyers’ dominance. Investors are particularly focused on Netflix’s upcoming earnings report, which could break the current consolidation and set the tone for the following trading days.

Company News:

• Netflix (NFLX.US) shares fluctuate slightly around yesterday’s closing level. The market remains in a wait-and-see mode ahead of the quarterly report, which could be crucial for the company’s next moves and sentiment in the technology sector.
• General Motors (GM.US) shares rise over 15% following the release of revised forecasts, in which the company reduced its earlier estimates of the negative impact of tariffs on its financial results. This demonstrates that GM is effectively implementing strategies to limit costs related to trade tariffs. Additionally, the company raised its profit guidance for fiscal year 2025, indicating positive prospects for improving profitability. In its statement, GM announced further actions aimed at minimizing the effects of tariffs through cost optimization and operational process improvements, which should positively impact financial results in upcoming quarters. Investors welcomed this news enthusiastically, leading to a rise in the stock price and a positive atmosphere in the automotive market. This fits into a broader trend of growing confidence in the ability of American industrial firms to handle trade challenges.
• Coca-Cola (KO.US) shares rise about 3.5% after reporting first-quarter 2025 results that exceeded analyst expectations. Earnings per share stand at $0.77 (a 5% year-over-year increase), and revenues reach $11.22 billion, driven mainly by price increases and a favorable product mix.
• 3M (MMM.US) shares gain over 4.5% following the publication of quarterly results that beat analyst forecasts. Adjusted earnings per share amounted to $2.19, representing a 10% year-over-year increase and surpassing the market expectation of $2.07. The company simultaneously raised its full-year earnings forecast, which positively influences investor sentiment.
• Philip Morris (PM.US) shares drop nearly 10% despite relatively solid third-quarter 2025 results. The company reports a significant 17.3% increase in adjusted earnings per share and a 9.4% rise in net revenues, primarily driven by strong growth in the smoke-free product segment, which now accounts for 41% of total revenues. Despite these solid fundamentals, investors are taking profits, leading to a decline in the stock price.