Business

Stock market news live updates: October 19, 2022

US stock futures moved lower in the early trade Wednesday as a two-day rally spurred by the better-than-feared start to earnings season lost steam.

Futures tied to the S&P 500 (^ GSPC) fell 0.3%, while futures on the Dow Jones Industrial Average (^ DJI) ticked down 60 points, or 0.2%. Contracts on the technology-heavy Nasdaq Composite (^ IXIC) were off by 0.3%.

Netflix (NFLX) was in the spotlight following a big earnings beat Tuesday afternoon that included 2.41 million in new subscribers – a key metric watched by analysts – more than double Wall Street’s estimate of 1 million additions. Executives noted in the earnings statement that the company is “on a path to reaccelerate growth” after a challenging first half of the year. Shares surged 14% in pre-market trading.

Elsewhere on the earnings front, shares of United Airlines Holdings (UAL) rose more than 5% Wednesday morning after the airline reported higher-than-expected third-quarter earnings results due to strong travel demand and a profit forecast for the current quarter that exceeded Wall Street estimates.

Strong reports from Netflix and United Airlines add to a batch of upbeat corporate results rolled out earlier in the week from companies including Goldman Sachs (GS) and Johnson & Johnson (JNJ).

Signage at the Netflix booth is seen on the convention floor at Comic-Con International in San Diego, California, US, July 21, 2022. REUTERS / Bing Guan

Signage at the Netflix booth is seen on the convention floor at Comic-Con International in San Diego, California, US, July 21, 2022. REUTERS / Bing Guan

Although figures have so far come in better than anticipated, of companies that have reported results for Q3 to date, only 69% posted actual earnings per share above estimates – below the 5-year average of 77%, according to FactSet Research. And of those that topped estimates, earnings beats have come in 0.1% above estimates, far lower than the 5-year average of 8.7%.

Many Wall Street strategists have emphasized that valuations have yet to fully reflect the lower earnings that are consistent with the slowdown in economic growth underway, pointing to forward earnings projections that remain far too high.

“If, as we expect, Q3 earnings disappoint and forward earnings expectations are guided lower, we may yet see another down leg for equities,” Gargi Chaudhuri, head of iShares investment strategy at BlackRock said in a note. “Don’t be fooled or chase these bear market rallies.”

“The market will, of course, eventually bottom, but until the Fed pivots or earnings are properly marked down, we think that time has yet to arrive,” Chaudhuri said.

NEW YORK, NEW YORK - OCTOBER 18: Traders work on the floor of the New York Stock exchange during morning trading on October 18, 2022 in New York City.  The stock market opened on an upswing with the Dow Jones gaining over 600 points, the S&P 500 jumping 2.20% and the Nasdaq Composite with a gain of 2.6% adding to the gains that began on Monday.  (Photo by Michael M. Santiago / Getty Images)

NEW YORK, NEW YORK – OCTOBER 18: Traders work on the floor of the New York Stock exchange during morning trading on October 18, 2022 in New York City. (Photo by Michael M. Santiago / Getty Images)

In commodities markets, oil pushed higher amid concerns that fresh European sanctions on Russia may further squeeze supply. The Biden administration is expected to announce a plan Wednesday to release 15 million barrels from US strategic reserves to quell gas prices. West Texas Intermediate (WTI) crude futures were up roughly 1.5% to trade around $ 84 per barrel.

Across the Atlantic, UK extended a volatile stretch as investors assessed a double-digit inflation print for September of 10.1%, putting a recent emergency move by the Bank of England to sell government bonds into question. The pound weakened and gilts moved lower.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Click here for the latest trending stock tickers of the Yahoo Finance platform

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedInand YouTube

About the author

ADMIN

Leave a Comment