Yahoo Finance Stocks rally, Netflix stuns investors
Wall Street is aiming for a rebound. All three major averages were sharply higher after a rally in global markets and better-than-expected quarterly results from Goldman Sachs and Netflix.
Goldman Sachs (GS) shares were up sharply in early trading. The Wall Street bank reportied stronger-than-expected earnings and revenue for its quarter ending September 30th. Profit soared about 58% driven largely by revenue from bond trading, commodities, and currencies, which jumped 34%.
Netflix streams success
Shares of Netflix (NFLX) surged after the company delivered earnings on Monday that blew away Wall Street expectations. Revenue also topped estimates. The streaming video giant added 3.2 million international customers during the quarter—far more than the 2 million it had forecast. But is the pop it got from international expansion sustainable?
Consumer prices rise
Consumer prices posted their biggest gain in five months in September. The Labor Department reported consumer prices rose 0.3% last month, after rising 0.2% in August, fueled by rising costs for gasoline and rents.
China courts Hollywood
China’s richest man is making a big pitch to attract Hollywood filmmakers. Wang Jianlin, chairman of Dalian Wanda Group, urged a group of Hollywood execs to partner with Chinese companies, saying that China will become the world’s largest movie market. To lure American movie makers to a huge studio in eastern China, Wanda is offering 40% rebates of some costs from a $750-million fund. Will Hollywood take the bait?
Trump’s fourth act: a TV network?
There’s new speculation about what Donald Trump will do if he loses the presidential election. This follows reports that Trump’s son-in-law has been shopping the idea of a new Trump TV network. The thinking goes that Trump has tapped into something in American politics that could translate into big ratings and profits. But will this idea get off the ground?
Stocks to watch
Visa (V) is in the spotlight following news late yesterday that the company’s chief executive Charles Scharf is stepping down on December 1st after leading the payment processor for four years. Scharf said he’s resigning because he can no longer spend enough time in San Francisco to do his job effectively with his family living New York. Former American Express president Alfred Kelly will take over the CEO spot.
Johnson & Johnson (JNJ) raised its profit outlook for the year after delivering a beat on both its top and bottom lines for the third quarter. Revenue rose more than 4% from a year ago, thanks to strong sales of some of its blockbuster drugs and medical devices, which helped offset weaker-than-expected consumer sales.
IBM (IBM) shares fell in early trading. That’s even though Big Blue’s earnings and revenue topped estimates for the third quarter. Revenue fell for the 18th consecutive quarter. However, IBM’s newer businesses, such as cloud computing and artificial intelligence, saw strong growth.
