Wall Street Futures Rise as Netflix Earnings Impress and Bitcoin Rallies

US stocks edge higher as strong Netflix results and crypto legislation lift investor sentiment

US Futures Edge Higher on Strong Earnings Outlook

US stock futures rose on Friday morning, buoyed by positive second-quarter earnings and signs of economic resilience despite ongoing trade tensions. By 07:51 GMT, key futures had edged up:

• Dow Jones futures: +64 points (0.1%)
• S&P 500 futures: +8 points (0.1%)
• Nasdaq 100 futures: +27 points (0.1%)

Investors responded positively to upbeat corporate earnings and commentary, suggesting a robust economy even as inflation risks persist due to the Trump administration’s aggressive tariff strategy.

While economists remain cautious, analysts at Capital Economics noted:

“We expect tariffs to slow growth but not trigger a recession.”

Netflix Posts Strong Earnings but Stock Dips

Netflix (NASDAQ: NFLX) beat expectations with second-quarter earnings, but shares slipped in after-hours trading due to concerns over its future growth pace.

Key Highlights:

• Earnings per share: $7.19 (vs. $7.08 expected)
• Revenue forecast: Raised to between $44.8bn–$45.2bn
• Growth driven by the hit series “Squid Game” and a push into live events and advertiser-supported content.

However, analysts questioned the sustainability of the outlook, especially given that the improved forecast partially stemmed from a weaker US dollar — labelled a “low-quality” earnings boost by analysts at Vital Knowledge.

Thomas Monteiro of Investing.com added:

“The guidance feels conservative for a stock priced for perfection.”

Despite the muted market response, Netflix shares are still up over 43% year-to-date, reflecting investor confidence in its long-term dominance in the streaming space.

Bitcoin Gains as US Passes Landmark Crypto Bills

Bitcoin surged above $120,000 in Friday’s Asian trading session, continuing a strong run driven by regulatory clarity in the United States.

Key Drivers:

• The US House of Representatives passed three major bills shaping a legal framework for digital assets.
• Bitcoin was last trading 1.1% higher at $119,583.30.
• The week’s high surpassed $123,000, though profit-taking slightly trimmed gains.

Major Legislation Passed:

• GENIUS Act: Requires stablecoin issuers to hold high-quality reserves and face regular audits.
• CLARITY Act: Clarifies regulatory oversight between the SEC and CFTC.
• Anti-CBDC Surveillance State Act: Blocks the Federal Reserve from launching a central bank digital currency without Congressional approval.

The legislation has been praised for providing much-needed clarity to investors and companies operating in the crypto space, suggesting long-term potential for growth and institutional adoption.

Investor Outlook

Stock Market: Strong earnings may keep upward momentum going into next week, particularly in tech-heavy indices.

Tech Sector: Despite Netflix’s dip, confidence remains strong for major tech firms in Q3.

Cryptocurrencies: With regulatory clarity emerging in the US, Bitcoin could see continued interest from retail and institutional investors.

Sources: (Investing.com, Bloomberg.com)