Earnings Insights for Our Traders
- Upcoming Netflix and Tesla Q3 earnings reports give the tech index a healthy boost
- The S&P 500 and Dow Jones Industrial Average prosper, following in Nasdaq’s footsteps
The Nasdaq was Monday’s biggest winner among the large-cap indexes, recording gains of 1.20%. The early-week increase in the tech-heavy index comes ahead of keenly-anticipated third-quarter earnings by streaming giant Netflix and automaker Tesla after the bell on Wednesday.
Netflix reported second-quarter revenue of $8.19 billion, notching up a 3% increase from the previous year. The streaming service forecasts revenue of $8.5bn for its third quarter, attributing the growth to major changes made to its service this year, including its new ad-supported tier and updated password-sharing policy.
Turning to Tesla, the automaker has produced at least 10,223 more vehicles this year compared to 2022. The 2023 target is 1.8 million, which would require the auto giant to deliver at least 476,000 cars in the fourth quarter, having delivered 435,000 electric cars in the September quarter. The prediction from analysts for this quarter is a substantial $24.2 billion, which would be less than the company made in its second quarter.
Both of these company updates are likely to have an impact on the Nasdaq’s direction in the next few sessions.
A Broader View
In a more comprehensive view of Monday’s market, the two other major indexes followed Nasdaq’s lead. The more diverse S&P 500 enjoyed a 1.06% boost while the Dow Jones Industrial Average posted the least daily gain, with an increase of 0.93%.
Looking ahead into the week, we can expect quarterly earnings reported not only by Tesla and Netflix, but by a broad range of companies such as pharma giant Johnson & Johnson and telecoms mainstay AT&T.
Further, Federal Reserve Chair Jerome Powell will speak on the current economic outlook in New York on Thursday. Investors will be carefully listening to his remarks for any market insight.
Stay ahead of the curve by planning for sudden market changes, as earnings reports can help traders identify investment opportunities or potential risks. By anticipating changes in market sentiment, you can gain an edge over the competition.