US stock futures were quiet on Friday, as investors assessed a bundle of corporate earnings and fresh growth data out of China. Netflix's quarterly income comes top of the estimates which highlights the company’s drive to prioritize profit over new subscribers. Elsewhere, gold hits an all-time peak and also Bitcoin rises amid strong safe haven demand.
Futures muted
US stock futures wavered around the flatline today following a mixed day on Wall Street.
By 07:31 GMT, Dow futures had dipped by 30 points or 0.1%, S&P 500 futures had added 4 points or 0.1%, and Nasdaq 100 futures had risen by 33 points or 0.2%.
Healthcare stocks performed poorly yesterday with Elevance Health in particular slumping after the group formerly known as Anthem slashed its full-year profit outlook. Molina Healthcare and Centene Corp also slid.
Meanwhile, chipmakers like Micron Technology and Broadcom ticked higher, buoyed by upbeat results from peer Taiwan Semiconductor Manufacturing Co. But the increases were tempered by weakness in freight transportation firm CSX and athleisure company Lululemon Athletica.
Netflix returns most profitable quarter in it’s history
Netflix reported better-than-anticipated quarterly income, in a sign of the streaming giant's push to emphasize profits over rapid subscriber growth.
The company added 5.07 million subscribers during its third quarter versus 8.76 million net new subscribers in the year-ago period, this reflects a weakening impact from a crackdown on password sharing between customers that started in 2023. Despite this the figure topped Wall Street estimates, helping send shares higher in extended hours trading.
Over half of the new subscribers in markets where Netflix's advertising-supported tier is offered selected the option, signalling some resilience in this crucial segment of the business. The trend helped offset a slate of new releases that Netflix said was "patchier than normal."
Earnings per share in the quarter came in at $5.40 and revenue rose to $9.83 billion, both above projections.
Net income is forecast to dip in the current quarter, although Netflix plans to roll out price increases in Italy and Spain to help drive revenue. It recently also hiked prices in other parts of the world.
Chinese economy grows 4.6% in third quarter
China's economy expanded at a slower pace in the third quarter, official data showed on Friday, highlighting the challenge facing Beijing as it attempts to reinvigorate sputtering activity in the country.
Chinese gross domestic product grew 4.6% year-on-year in the July-September period, in line with expectations but decelerating from 4.7% in the prior quarter. It was the lowest reading in 18 months, and below the government's full-year target of 5%.
As previously reported Beijing has announced a string of stimulus measures over the past three weeks, marking China’s most concentrated efforts yet to shore up sluggish economic growth. A sustained deflationary trend, weak private spending and a prolonged property market crash have been the biggest weights on the world's second-largest economy.
Gold touches record high
Gold prices hit a record high in Asian trade on Friday, extending a multi-year drive higher that has been bolstered by solid safe haven demand.
A closely contested US presidential election, wider economic uncertainty and geopolitical tensions have given support to the yellow metal.
Spot gold rose 0.4% to $2,706 per troy ounce, whilst gold futures expiring in December rose 0.5% to $2,720.15 an ounce.
The price of Bitcoin, which is seen by some investors as a hedge to risk similar to gold, gained on Friday as well.
(Source: Investing.com)
