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


Nasdaq futures rose Tuesday night after major averages posted a second straight day of gains, with Netflix reporting strong gains after the bell.

Nasdaq 100-linked futures added 1.2%. Dow Jones Industrial Average futures gained 0.4% and S&P 500 futures rose 0.7%.

All three major stock averages ended the regular trading day higher as earnings reports fueled a choppy market. The Dow closed up about 337 points, while the S&P 500 gained 1.1% and the tech-heavy Nasdaq Composite added 0.9%.

The extended business moves came after Netflix reported earnings and revenue that beat estimates, as well as strong subscriber growth for the third quarter. Shares rose as much as 14% in extended trading.

Some on Wall Street are adjusting their earnings forecasts lower as investors worry about a recession. Gene Goldman, chief investment officer at Cetera Investment Management, said that while an economic downturn might be mild, the market could struggle with such downward revisions.

“Earnings estimates are too high for the S&P 500, 7% to 9% a year going forward,” he said. “Slowing economic growth and Fed rate hikes will likely put downward pressure on earnings. Because earnings drive stock prices, they could put pressure on markets for some time.”

Tech gains will be in full swing next week, but IBM and Tesla are set to report on Wednesday. Social media firm Snap will report later in the week.

In economic data, investors are eagerly awaiting housing starts on Wednesday. The so-called Federal Reserve Beige Book, the central bank’s report on the current state of economic conditions, will also be published.


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