Morning Minutes

Stocks Rally Despite Netflix Disappointment




US index futures are all up about 0.35% this morning, building on yesterday’s US index gains of 1.4%-2.1%. Over in Europe, the Dax is up 1.25%, while the FTSE is up 0.2%. Energy markets are up with WTI crude oil gaining 1.4%, and natural gas rising 3.1%, but metals are down with copper losing 1.3% and gold falling 0.4%.

What appears most impressive about this morning’s US gains is that they come despite negative news from Netflix overnight. The streaming giant beat expectations on earnings ($3.53 vs street $2.98) but reported its first quarterly decline in subscribers since 2011 (-0.2 million vs street +2.73 million). Netflix has plunged 27.7% in premarket trading and has been dragging on other streaming service/content providers premarket with Walt Disney down 5.3%, Warner Bros. Discovery down 4.1% and Roku down 7.5%.

Other corporate news has been positive. Lululemon is up 2.0% this morning after management outlined a plan to double sales by 2026 including increasing its offerings for men, plus growing online and international sales. Other notable earnings overnight include IBM ($1.40 vs street $1.38), and Procter & Gamble ($1.33 vs street $1.29). Later today, results are due from Tesla Motors, railroad CSX, Alcoa and United Airlines.

Inflation and housing dominate today’s economic reports. Canadian consumer price inflation jumped more than feared in March (6.7% vs street 6.1%). New house prices were up 11.0% a year ago, up from 10.8% growth last month. Later today, US existing home sales, weekly oil and gasoline inventories and the Beige Book US regional economic report are all scheduled.  

SIA Wealth Market Outlook Webinar Thursday, April 21 at 2:00 pm EDT

Please join us on Thursday, April 21 @ 12pm MT / 2pm ET for our monthly Market Outlook Webinar.

SIA Wealth’s President, Ted Bader, will present:

  • An update on our “Uncharted Waters” presentation from October 2021
  • Why and how it will impact investors of today.
  • How to prepare for the storm amidst the geopolitical conflict

Register for the webinar:

After registering, you will receive a confirmation email containing information about joining the webinar. A replay will be available and sent to all registrants after the webinar, with the presentation included. 

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Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

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