Tuesday January 23rd

23-01-2018

Nasdaq futures point to higher open after Netflix earnings

Nasdaq 100 futures rose on Tuesday after video-streaming giant Netflix reported better-than-expected subscriber growth for the fourth quarter. The Nasdaq index was tipped to open 0.2 percent higher, while shares of Netflix spiked 10 percent higher in the premarket. Netflix also reported quarterly earnings and sales that beat expectations. Dow Jones industrial average and S&P 500 futures traded marginally lower as earnings season continued, while the government resumed operations after a three-day shutdown. Dow components Johnson & Johnson, Procter & Gamble and Travelers Cos. all reported better-than-expected earnings and revenue on Tuesday. Verizon, another Dow component, posted a profit that missed expectations, while sales surpassed analyst estimates. Texas Instruments and United Continental are among the companies scheduled to report Tuesday after the bell. Wall Street also looked to Washington as a three-day government shutdown concluded. During Monday's session, members of the Senate managed to secure a temporary arrangement to keep the U.S. government open until February 8. The vote propelled the Dow, S&P 500 and Nasdaq composite to all-time highs. The chamber passed a stopgap bill by a margin of 81-18. Members of the House later passed the bill, which was signed by President Donald Trump. In data news, the Philadelphia Fed non-manufacturing survey is set to come out at 8:30 a.m. ET, followed by the Richmond Fed Survey of Manufacturing Activity at 10 a.m. ET. Elsewhere, oil prices edged higher, following news that the International Monetary Fund (IMF) had revised its outlook on the world economic growth upwards for this year and next. Brent crude futures were at $69.38 a barrel at 0756 GMT, up 35 cents, or 0.5 percent, from their last close, not far off the three-year high of $70.37 reached on Jan. 15. U.S. West Texas Intermediate (WTI) crude futures were at $63.93 a barrel, up 36 cents, or 0.6 percent, from their last settlement. WTI rose to its highest since December 2014 on Jan. 16 at $64.89. Traders said oil markets were generally well supported by healthy economic growth. Major Asian indexes closed with significant gains on Tuesday following the stronger lead from Wall Street after U.S. lawmakers reached a deal to end a government shutdown. Investors also digested the Bank of Japan's decision to keep monetary policy steady. Japan's Nikkei 225 rose 1.29 percent, or 307.82 points, to close at 24,124.15, after touching its highest levels in more than 26 years earlier in the day. Across the Korean Strait, the Kospi added 1.38 percent to close at 2,536.60 despite automakers slipping into negative territory during the session. Positive sentiment was also seen in greater China markets. The Hang Seng Index rose 1.56 percent by 3:07 p.m. HK/SIN after touching an all-time high for the fifth consecutive session earlier in the day. Mainland markets also saw gains. The Shanghai composite advanced 1.3 percent to finish at 3,546.98 and the Shenzhen composite rose by a more moderate 0.36 percent to end at 1,950.99. Gold prices rose on Tuesday as the dollar weakened to near three-year lows, but an end to the uncertainty created by a three-day U.S. government shutdown capped gains. Gold was mostly unaffected by the shutdown in the previous session, trading in a tight range. Spot gold rose 0.3 percent to a near one-week high of $1,336.68 per ounce at 1126 GMT, while U.S. gold futures for February delivery climbed 0.3 percent to $1,335.70 per ounce.