Thursday, October 17th, 2024
Markets experienced a cooldown today, with a noticeable drop soon after the opening bell. The small-cap Russell 2000, which had performed well yesterday, slipped into negative territory early and remained there throughout the day. Among the four major indexes, movement was mixed: the Dow rose by +162 points (+0.38%) to an all-time closing high of 43,240, while the Russell fell by -0.31%. The S&P 500 dipped by -0.012%, and the Nasdaq saw a slight increase of +0.035%.
Economic Reports Impact Today’s Market
This morning’s economic data included the Industrial Production figures for September, which dropped by -0.3%, worse than the -0.2% analysts had predicted. This marks the third consecutive month of declines, one less than the four-month downturn earlier this year from January to April. Furthermore, Capacity Utilization fell to 77.5%, its lowest level since January. This figure declined from 77.8% last month, significantly down from June’s high of 78.2%.
On a more positive note, Business Inventories for August met expectations with a growth of +0.3%, matching the gain observed in July. While steady gains are encouraging, inventory growth is considered less favorable than other types of economic growth.
The Homebuilder Confidence Index also showed improvement for October, rising to 43 from September’s figure of 41, exceeding the predicted level of 42.
Netflix Exceeds Earnings Expectations in Q3
Streaming powerhouse Netflix (NFLX) released its Q3 earnings report today, showcasing impressive results. The company reported earnings of $5.40 per share, surpassing the Zacks consensus estimate of $5.09, marking a remarkable +45% increase year over year. Additionally, revenues hit $9.825 billion, exceeding the expected $9.77 billion and representing a +15% growth compared to the previous year.
Operating margins also exceeded expectations, reaching +30%, compared to the +22% forecast. Global streaming subscriptions grew by +5.07%, totaling 282.7 million, although this represents a slowdown from last year’s addition of 8.8 million subscribers. Looking ahead, Netflix has raised its revenue guidance for the next quarter to a range of $43-44 billion, and shares have increased by +3.4% today, contributing to a +46% gain year to date.
Intuitive Surgical Reports Strong Financial Performance
Major player in medical devices, Intuitive Surgical (ISRG) also reported robust earnings, posting $1.84, significantly higher than the $1.65 expected by analysts. Revenues reached $2.04 billion, surpassing the consensus estimate of $2.01 billion, reflecting a solid +17% increase. This continues Intuitive’s streak, as this marks the seventh consecutive earnings beat for the company, driven by the delivery of 379 additional da Vinci surgical systems, up +18% from last year. After some fluctuation, shares are up +5% in late trading.
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