DJIA Futures: +9 (+0.03%)
SPX Futures: +4 (+0.1%)
NASDAQ Futures: +40 (+0.3%)
Good morning friends!
Futures are rising as traders look ahead to a speech by the Fed Chair later today.
Let’s get right to it!
Treasury yields are surging as the market awaits comments from Fed Chair Jerome Powell.
The 10-year yield is up 5 basis points at 4.95% after pushing closer to 5% earlier this morning.
That yield crossed the 4.9% mark for the first time since 2007 on Wednesday.
Many analysts believe the recent surge in Treasury yields has done some of the Fed’s job for them, removing the need for another rate hike this year.
All ears will be on Powell at 12:00 p.m. ET to see if he strikes a more dovish tone than he did in the press conference after the last meeting.
The Fed’s next rate decision is on November 1.
Netflix (NFLX) shares are surging 13.9% ahead of the open after beating Q3 expectations and reporting a strong jump in subscribers.
Here’s how the streaming giant’s results compared to analysts’ estimates:
The company added 8.76 million global subscribers during the quarter vs estimates for 5.49 million.
Netflix said its ad-tier memberships grew nearly 70% from the previous quarter.
The company also announced price increases.
The ad-tier plan will remain $6.99 per month, basic will increase to $11.99 from $9.99, premium will increase to $22.99 from $19.99, and the standard plan will remain at $15.49.
Tesla (TSLA) shares are dropping 6.9% in premarket trade after missing Q3 expectations across the board.
Here’s how the electric automaker’s results compared to analysts’ estimates:
It was the first quarter Tesla has missed on both the top and bottom line since Q2 2019.
Gross profit declined 22% year over year while the company’s total operating margin came in at 7.6% vs 17.2% a year ago.
On X (Twitter), the company said, “Cybertruck production remains on track for later this year, with first deliveries scheduled for November 30th at Giga Texas.”
But CEO Elon Musk warned during the conference call, “It is going to require immense work to reach volume production and be cashflow positive at a price that people can afford. I just want to temper expectations for Cybertruck. It’s a great product, but financially, it will take a year to 18 months before it is a significant positive cash flow contributor.”
American Airlines (AAL) shares are up 1.3% ahead of the open after beating Q3 earnings expectations.
Here’s how the airline’s results compared to analysts’ estimates:
On a non adjusted basis, American lost $545 million during the quarter, its first loss since Q1 2022.
Capacity rose 7% year over year but higher costs squeezed profit.
American cut its full-year forecast, partly due to higher fuel prices.
The airline now expects full-year adjusted EPS between $2.25 and $2.50 vs $4 to $3.75 previously.
American expects a full-year adjusted operating margin of 7% vs 10% previously.
Weekly jobless claims fell unexpectedly last week.
The Labor Department reported 198,000 Americans filed initial claims for unemployment benefits.
That was down by 13,000 from the previous week’s revised level and lower than 210,000 expected.
Continuing claims rose by 32,000 to 1.734 million vs 1.710 million expected in the week ending October 7.