Nasdaq futures rise for a third day as better-than-expected Netflix results keep tech gains going

Nasdaq futures jumped Tuesday night after the most important averages posted a second straight day of beneficial properties, and Netflix reported strong earnings after the bell.

Futures tied to the Nasdaq 100 added 1.2%. Dow Jones Industrial Common futures gained 0.4%, and S&P 500 futures rose 0.7%.

All three of the most important inventory averages completed the common buying and selling day increased, as earnings studies boosted a uneven market. The Dow closed increased by about 337 factors, whereas the S&P 500 gained 1.1% and the tech-heavy Nasdaq Composite added 0.9%.

The prolonged buying and selling strikes got here after Netflix reported earnings and income that beat estimates in addition to sturdy subscriber progress for the third quarter. Shares surged as a lot as 14% in prolonged buying and selling.

Some on Wall Avenue are resetting their earnings projections decrease as buyers fear a couple of recession. Gene Goldman, chief funding officer at Cetera Funding Administration, mentioned that whereas an financial recession could possibly be gentle, the market may wrestle with these downward revisions.

“Earnings estimates are a bit too excessive for the S&P 500 at 7% to 9% per 12 months going ahead,” he mentioned. “Slowing financial progress and Fed fee hikes will probably put downward stress on earnings. As a result of earnings drive inventory costs, they might stress markets for a while.”

Tech earnings will probably be in full swing subsequent week, however IBM and Tesla are on deck to report Wednesday. Social media agency Snap will report later within the week.

In financial information, buyers are trying ahead to housing begins on Wednesday. The Federal Reserve’s so-called Beige E-book, the central financial institution’s report on the present state of financial situations, will come out as nicely.