News in Brief: Netflix Results to Kick Off Earnings Deluge as Markets Watch Trade Talks

US Futures Edge Lower as Investors Brace for a Busy Earnings Week and Fresh Developments in the US-China Trade Front

U.S. stock futures dipped slightly on Tuesday as investors turned their focus to a wave of corporate earnings reports and ongoing developments in global trade relations. With Netflix and other major companies set to release results, market sentiment is cautious yet focused.

US Stock Futures Soften as Earnings Season Begins

Wall Street futures saw a modest decline in early Tuesday trading:

• Dow futures dropped by 86 points (0.2%)
• S&P 500 futures fell by 9 points (0.1%)
• Nasdaq 100 futures slipped 42 points (0.2%)

Despite the cautious start, markets ended Monday on a positive note, buoyed by tech and financial shares. Optimism was partly driven by hopes that U.S.-China trade tensions might ease, with a potential meeting between Presidents Biden and Xi Jinping in South Korea later this month.

Netflix Earnings in the Spotlight

Netflix is set to report its quarterly earnings after Tuesday’s market close. The streaming giant has seen its shares surge by over 39% so far this year, boosted by strong subscriber growth and successful integration of its new ad-supported tier.

Investors, however, will also be watching to see if recent backlash—fuelled by Elon Musk’s public criticism of certain content—has had any impact on performance or outlook.

Other key companies also reporting include:

• GE Aerospace
• Coca-Cola
• Philip Morris
• RTX Corp

Zions Bancorp Recovers Despite Loan Loss

Zions Bancorp shares edged higher in after-hours trading after the regional bank reported improved third-quarter earnings, driven by higher net interest income.

• Net interest income rose to $672 million from $620 million a year ago.
• The gain came despite a $50 million loss on two commercial loans from its California division.

Zions assured analysts the losses were isolated, helping to calm fears that triggered a broader sell-off in regional bank shares last week. Investors remain watchful of the overall health of smaller US lenders.

Amazon Web Services Recovers from Global Outage

Amazon confirmed that its AWS cloud service has returned to normal after a major outage on Monday caused widespread disruptions:

• Affected services included Coinbase, Robinhood, and AI startup Perplexity.
• The outage stemmed from a regional gateway issue on the US East Coast.

Although service has resumed, Amazon noted a backlog of messages still being processed. The event underscores the global dependence on cloud computing and may prompt concerns over tech infrastructure resilience.

Japan Set for First Female Prime Minister

Sanae Takaichi is on course to become Japan’s first female Prime Minister after winning a critical lower house vote:

• Takaichi secured 237 out of 465 votes in the lower house.
• She will replace Shigeru Ishiba, who resigned after poor election results.

A fiscal moderate, Takaichi is expected to ramp up government spending on infrastructure, defence, and industrial development. Her leadership arrives at a crucial time as Japan faces stubborn inflation, declining consumer spending, and US-led trade pressure.

Market Outlook

With earnings season now in full swing, investors are bracing for increased volatility. Tech stocks, led by Netflix and Apple, are likely to steer market momentum this week.

Key drivers to watch:

• Netflix's subscriber growth and ad revenue.
• Amazon's cloud service stability post-outage.
• Bank earnings from Zions and regional peers.
• Updates on US-China trade talks and tariffs.

If earnings broadly exceed expectations, markets could resume their upward trajectory. However, any negative surprises—particularly in tech or financials—may temper recent gains.

Sources: (Investing.com, Reuters.com)