Futures Rise on Netflix; Why Musk may be so bullish on Tesla

Dow futures rose overnight, along with S&P 500 futures and Nasdaq futures Netflix (NFLX) Focus on subscriber growth, Tesla profits looming.


An attempt to rally the stock market added to the gains on Tuesday but closed away from the highs in a volatile session. Reports apple (AAPL) iPhone production didn’t help. Apple shares fell briefly but managed to close slightly higher.

While the market rally is still underway, nothing has been confirmed yet. Investors should pay close attention and remain vigilant.

Netflix’s subscriber growth was much stronger than expected in the third quarter, with the streaming TV giant also optimistic about its fourth-quarter customers. Profits also topped. Netflix stock is up, indicating a breakout. Disney (DIS) and year (ROKU) also rose overnight.

intuitive surgical (ISRG) beat third-quarter earnings per share and revenue expectations. ISRG stock jumped in action overnight. Intuitive stocks are close to their lows. But the results for makers of robotic surgical systems could be a good sign for other medical equipment companies.

United Airlines (UAL) posted strong third-quarter earnings and fourth-quarter guidance, following bullish expectations from Delta Airlines (DAL) last week. UAL stock jumped in the extended trade, with delta adding to the regular session’s gains.

Giant chip gear ASML (ASML) reports early Wednesday morning, followed by L research (LRCX) Wednesday night. They will provide reading about the chip sector, including potential comments on US controls on chip technology to China. ASML and LRCX stock are just above their lowest levels since 2020.

Tesla (TSLA) on tap Wednesday evening. The electric car giant should post solid earnings growth, but investors want reassurance about the future.

Meanwhile, there was new evidence of Elon Musk’s existence Twitter (TWTR) A takeover could be imminent. TWTR stock is not far from the buy price of $54.20 per share.

Dow jones futures contracts today

Dow Jones index futures rose 0.7% against fair value, as DIS stock provided a small boost. S&P 500 futures rose 0.9%. Nasdaq 100 futures jumped 1.5%. NFLX and United Airlines stocks are components of the S&P 500 and Nasdaq 100.

Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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stock market rise

The stock market’s attempt to rally began strongly but fell from the highest levels almost immediately. A choppy session followed, although the major indices closed with solid to strong gains.

The Dow Jones Industrial Average rose 1.1% in stock market trading on Tuesday. The S&P 500 rose 1.15%. The Nasdaq Composite advanced 0.9%. Small cap Russell 2000 rose 1.2%.

The 10-year Treasury yield fell one basis point to 4%, after dropping to 3.97% shortly after the market opened, and then climbed to 4.07%, just below its 14-year high.

US crude oil prices fell 3.1% to $82.82 a barrel amid reports that the Biden administration will release more crude oil from the Strategic Petroleum Reserve. The United States may ramp up sales of the Strategic Petroleum Reserve during the winter, according to reports late Tuesday. The government will pledge to buy back crude reserves at or below $67 to $72 a barrel.

Natural gas futures are down 4.2% after falling 7% on Monday.


Among the top ETFs, the Innovator IBD 50 ETF (FFTY) is up 1.15%, while the Innovator IBD Breakout Opportunities ETF (BOUT) is up 1.3%. The ETF (IGV) led the iShares Expanded Tech-Software Sector (IGV) by 1.7%. VanEck Vectors Semiconductor ETF (SMH) closed just above the break-even point. ASML and LRCX stocks are important SMH holdings.

The SPDR S&P Metals & Mining ETF (XME) is up 1.3%, and the US ETF Global X Infrastructure Development (PAVE) is up 2%. The US Global Gates ETF (JETS) is up 2.5%, with the main components being United Airlines and DAL.

The SPDR S&P Homebuilders ETF (XHB) is up 2.3%. The Energy Select SPDR ETF (XLE) is up 0.9% while the Financial Select SPDR ETF (XLF) is up 1.6%. The SPDR Healthcare Sector Choice Fund (XLV) rose 0.6%.

Reflecting stocks with speculative stories, the ARK Innovation ETF (ARKK) rose 1.6% and the ARK Genomics ETF (ARKG) rose 1.3%. Tesla stock is the highest stake in Ark Invest ETFs.

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Apple iPhone concerns

Apple decided to cut production of the iPhone 14 Plus just two weeks after the big screen phone went on sale. This is according to the information, citing sources. It comes after earlier reports that tech giant Dow Jones was limiting iPhone 14 production in general. However, the 14 Plus wasn’t seen as a big seller, with investors focusing more on the more expensive iPhone 14 Pro versions.

The iPhone Plus report came as Apple unveiled new iPads.

Apple earnings are due on October 27.

Apple shares rose 0.9 percent to 143.75 on Tuesday. However, shares are up 3.1% on the day, breaking the 21-day streak.

Netflix subscribers

Netflix earnings beat estimates as subscribers increased by 2.41 million versus analyst views of nearly 1 million. The tech giant saw a 4.5 million subscriber increase in the fourth quarter. On November 3, the streaming giant will launch an ad-supported category for $6.99 per month. Netflix is ​​also ramping up its efforts to crack down on password sharing in hopes of boosting subscribers.

But the days of easy subscriber growth are long gone. It’s a tough and expensive battle just to hold on to existing customers, with Disney+, Apple+, HBO Max, Paramount+ and many more fighting for viewers’ eyeballs and wallets.

NFLX stock rose 14% to about 274 in extended trade. Shares fell 1.7 percent to 240.86 on Tuesday, after climbing 6.7 percent on Monday. Netflix stock has 252.09 buying points from a bottom base, according to MarketSmith analysis. It should cross that level easily, but could test the 200 day long slip line.

Disney’s stock jumped modestly overnight. DIS stock rose 1.2% on Tuesday, below the 50-day and 200-day lines.

Roku’s stock rose strongly in an extended movement. Shares have collapsed since hitting a record high of 490.76 in July 2021, but jumped 1.3% on Tuesday.

Tesla earnings

Tesla earnings are due late Wednesday. Analysts expect Tesla’s profit to jump 76% from the previous year, with revenue rising strongly.

But demand concerns are growing amid rising production and declining backlogs. So investors will be excited to comment on Tesla’s deliveries in the fourth quarter and next year.

Tesla stock rose 0.4% to 200.19 Tuesday after rising to 229.75 in the morning. Tesla stock hit a 15-month low on Friday.

CEO Elon Musk may have more reason to be bullish on Wednesday night’s earnings call. Assuming the Twitter deal closes, possibly by October 28, Musk may need to sell additional Tesla shares in the coming days to help pay for the $44 billion acquisition. Some estimates suggest that Musk may need to sell another $8 billion of TWTR stock.

Bloomberg reported that Twitter closed employee stock accounts Tuesday “in anticipation” of a deal. Twitter stock rose just over 2% to 51.78.

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Market Rise Analysis

At Tuesday’s open, the S&P 500 and Nasdaq Composite gapped above their 21-day moving averages, joining the Dow Jones and Russell 2000. All major indices also moved above Friday’s highs, after all on Mondays despite big gains .

Major indices pared or canceled gains as Treasury yields approached recent highs, rebounded somewhat, and then slipped back on Apple iPhone news. The Nasdaq is well below the 21-day line while the S&P 500 closed slightly above that level, but in the lower half of the range.

At one point, the major indicators were pointing to a possible follow-up day to confirm a new uptrend. The Dow and S&P 500 closed strong, with volume above Monday’s level. But the gains weren’t strong enough to qualify as a follow-up. A good close of the high session wasn’t exactly indicative of strength.

FTD can happen at any time. A sure market rally would be a positive sign, but not a guarantee. Even if it works, there could be another rally in the bear market hitting resistance at the 50-day or 200-day lines.

Booz Allen Hamilton (BAH) A firm buy point broke through the base, and closed near the session highs. BAH stock’s relative strength line hit a new high, but the advisory firm’s growth is rather modest.

Aehr . Test Systems (AEHR) An entry point opened at 17.80 with heavy trading. The RS line of AEHR has reached its peak in 2022. But the stock is well above the 50-day line and subject to significant volatility.

double check (DV) hit right at the buying point and arguably topped some slightly lower entries before paring gains.

while, Shock Wave Medical (SWAV) and Wolfspeed (WOLF) Hitting the resistance around the 50-day lines.

Time to Market with IBD’s ETF Market Strategy

What are you doing now

This is a fun time trying to rally the market has made some progress, but the move has been choppy, with both resistance and support at the 21-day line. Buying stocks is difficult, because if you buy aggressively, the gains can disappear quickly if the market reverses from its intraday highs.

So if you make any moves, get in slowly and be prepared to get out quickly.

There is nothing wrong with staying fully or almost completely cash, waiting for more clarity in the market.

But while you wait, stay in touch with the market. And work on those watchlists. Stocks can quickly move in or out of their location in the current climate, so be sure to keep your watchlists up to date. Focus on a selection of exercisable or semi-executable stocks, keeping an eye on a broader list of stocks that show strong relative strength.

Read the big picture every day to stay in sync with market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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