Wall Street lower with NFLX dropping on earnings, ASX to rise

Last update - 22 April 2024 By James Woods

US equities retreated on Friday, driven by losses on large-cap stocks after Netflix sank following its latest earnings results.

United States

Shares in Netflix sank -9.09% after a weak forecast for revenue and reporting that the company will stop reporting subscriber growth numbers in 2025. In an update to investors, Netflix said subscribers will be lower this period, while revenue is expected to increase 16%. The streaming giant said it will stop reporting paid quarterly membership and revenue per subscriber starting in Q1 2025.

The S&P500 declined -0.88% while the Nasdaq Composite was -2.05% lower, although the economically sensitive Russell 2000 was 0.24% higher with the VIX up 3.94% to 18.71. Ahead this week, investors will be focused on the latest round of PMI reports for April on Tuesday followed by the latest durable goods order on Wednesday while Thursday will bring the latest GDP data expected to show the economy expanded at a 2.5% annualised rate over the first quarter. Further, Thursday will bring the latest round of PCE inflation data for March, expected to show a 2.6% increase over the year in both headline and core prices.

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Australia

The ASX is expected to open higher this morning with ASX200 futures up 27 points or 0.36% to 7,621. The index fell -0.98% on Friday in broad-based selling with 87% of stocks lower and all sectors but energy (0.04%) closing down. Ahead this week investors will turn to the latest PMI reports for April on Tuesday followed by the official inflation data for Q1 on Wednesday, expected to show a 3.4% increase over the year.

Commodities

Oil prices finished up on Friday with both WTI and Brent crude up 0.5% and 0.21% respectively. Iron ore was -0.33% lower on Friday and a further -0.47% lower this morning while copper finished 1.37% higher on Friday. Gold rose 0.54% to US$2,391 an oz, silver gained 1.57% while Bitcoin was -0.42% lower.

Economic Calendar

Eurozone Consumer Confidence (MoM Apr) 00:00

ECB Lagarde Speech 01:30

This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.

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