Nasdaq, S&P 500 set for higher open on tech boost; Netflix surges

Reuters

Nasdaq, S&P 500 set for higher open on tech boost; Netflix surges

2024 10월 18, 오후 1:09 GMT

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Netflix projects continued growth through year-end

CVS falls after replacing CEO

American Express, SLB down after results

Futures: Dow down 0.13%, S&P 500 up 0.24%, Nasdaq up 0.55%

Updated at 8:31 a.m. ET/1231 GMT

By Lisa Pauline Mattackal and Purvi Agarwal

Oct 18 (Reuters) - Futures pointed to a higher open for the S&P 500 and the Nasdaq on Friday as technology shares broadly advanced and investors parsed corporate results, while Netflix jumped after beating subscriber growth estimates.

Shares of Netflix NFLX.O gained 6.4% in premarket trading after the streaming giant topped Wall Street estimates for subscriber additions and said it expected continued growth through the end of the year.

Most of the so-called MagnificentSeven stocks, which have driven much of Wall Street's rally this year, were higher in premarket trading, with Apple AAPL.O up 2% after data showed a jump in new iPhone sales in China.

Chip heavyweight Nvidia NVDA.O rose 1.2%, extendinggains from Thursday following strong results from contract chipmaker TSMC 2330.TW, which lifted semiconductor stocks.

Dow E-minis 1YMcv1 were down 55 points, or 0.13%, U.S. S&P 500 E-minis EScv1 were up 14 points, or 0.24%, and Nasdaq 100 E-minis NQcv1 were up 112.5 points, or 0.55%.

Mostly upbeatearnings from financial companies and broadly positive economic data have lifted the Dow and the S&P 500 to fresh record highs this week. The Dow closed at a record high on Thursday, while the S&P 500 is nearing the psychologically important 6,000 mark.

All three major indexes were set to logtheir sixth consecutive week of gains.

"The financials have responded very well to earnings. They were the first real big (sector) to report and they performed rather well. Now the attention is shifting and it's going to be on tech and other big blue-chip companies," said Adam Sarhan, chief executive at 50 Park Investments.

"Until we see stocks really get walloped or fall hard on earnings, the market's earned the bullish benefit of the doubt."

However, stretched valuations - with the S&P 500 trading at nearly 22 times forward earnings - and high expectations for corporate results could leave stocks vulnerable to a pullback, amid indications that investors are exploring less expensive sectors.

The small-cap Russell 2000 .RUT is set to outperform major indexes in the week with a roughly 2% rise. Futures tracking the index RTYcv1 were up 0.3%.

American Express AXP.N lost 2.7% after its quarterly revenue missed estimates.

Procter & Gamble PG.N edged 0.4% lower after it missed first-quarter sales expectations, while oil giant SLB SLB.N dipped 1% after missing third-quarter revenue estimates .

Fed officials Christopher Waller, Neel Kashkari and Raphael Bostic are slated to speak during the day.

Expectations for the U.S. Federal Reserve to ease interest rates by 25 basis points at its Novembermeeting have remained fairly steady throughout the week, currently standing at 90%, according to CME's FedWatch.

In economic data, single-family housing starts increased 2.7% to a seasonally adjusted annual rate of 1.027 million units in September.

Meanwhile, U.S. listings of Chinese companies leapt after China's centralbank launched funding schemes aimed at boosting the equity market. Alibaba BABA.N gained 3%, JD.com JD.O rose 5.3% and PDD Holdings PDD.O jumped 4.1%.

CVS Health CVS.N slumped 9.8% after a report said it had named long-time executive David Joyner its newtop boss.

Netflix returned more to shareholders in 20 years https://reut.rs/3YsYfzS

Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai

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