Netflix shares fell more than 8% in after-hours trading , as a disappointing second-quarter outlook and leadership changes outweighed otherwise solid first-quarter results. Weak Guidance Sparks Sell-Off Netflix forecast Q2 earnings of US$0.78 per share , below analyst expectations of US$0.84 , while revenue is projected at US$12.57 billion , missing the US$12.64 billion consensus . The weaker guidance raised concerns over near-term growth momentum , triggering a sharp negative market reaction. Strong Q1 Performance Fails to Impress For the first quarter: Revenue rose 16% YoY to US$12.25 billion (above estimates) Earnings surged 86% to US$1.23 per share However, earnings were boosted by a US$2.8 billion one-off termination fee , reducing the quality of underlying growth. Operating margin improved to 32.3% , but still came in below expectations (32.4%) , further dampening sentiment. Rising Costs and Strategic Sh...
At this point, oil cycle is everything and the global market rallied after crude oil goes up as market focused on an upcoming meeting of major oil producers that investors hope could stabilize volatile petroleum markets.
Crude oil futures rose more than 2% after Venezuela reaffirmed an oil producers meeting in mid-March that would include Saudi Arabia, Russia and Qatar. Prior to the announcement, oil was down as much as 3%.
U.S. crude futures CLc1 settled up 92 cents, or 2.9%, at $33.07 a barrel.
Brent crude futures LCOc1 finished up 88 cents, or 2.6%, at $35.29 a barrel, hitting a three-week high.
The US market is also looking bullish as a robust data on durable goods orders indicated a recovery in the manufacturing sector
The Dow Jones industrial average improved by 1.29% to 16,697.36, the S&P 500 added 21.93 points, or 1.14%, to 1,951.73 and the Nasdaq Composite gained 39.60 points, or 0.87%, to 4,582.21.
European equity markets also showed some positivism after this week's downtrend that was caused by fears of Britain taking the exit route from the EU.
Europe's FTSEurofirst 300 lost almost 4% since Tuesday, saw a gain of 2% as risk appetite returned.
Equity markets and oil prices have moved in sync this year so far, but analysts say they expect the two to decouple in the not-too-distant future.
MSCI's gauge of global stock markets was up by 1.1%.
Federal Reserve policymakers have been concerned about the erosion in inflation expectations which could impair efforts to boost domestic price growth to their 2-% goal.
The yield premiums on regular U.S. Treasuries over Treasury Inflation Protected Securities, known as inflation breakeven rates, have risen from their lowest levels since early 2009 in recent days with the rebound in oil prices.
Crude oil futures rose more than 2% after Venezuela reaffirmed an oil producers meeting in mid-March that would include Saudi Arabia, Russia and Qatar. Prior to the announcement, oil was down as much as 3%.
U.S. crude futures CLc1 settled up 92 cents, or 2.9%, at $33.07 a barrel.
Brent crude futures LCOc1 finished up 88 cents, or 2.6%, at $35.29 a barrel, hitting a three-week high.
The US market is also looking bullish as a robust data on durable goods orders indicated a recovery in the manufacturing sector
The Dow Jones industrial average improved by 1.29% to 16,697.36, the S&P 500 added 21.93 points, or 1.14%, to 1,951.73 and the Nasdaq Composite gained 39.60 points, or 0.87%, to 4,582.21.
European equity markets also showed some positivism after this week's downtrend that was caused by fears of Britain taking the exit route from the EU.
Europe's FTSEurofirst 300 lost almost 4% since Tuesday, saw a gain of 2% as risk appetite returned.
Equity markets and oil prices have moved in sync this year so far, but analysts say they expect the two to decouple in the not-too-distant future.
MSCI's gauge of global stock markets was up by 1.1%.
Federal Reserve policymakers have been concerned about the erosion in inflation expectations which could impair efforts to boost domestic price growth to their 2-% goal.
The yield premiums on regular U.S. Treasuries over Treasury Inflation Protected Securities, known as inflation breakeven rates, have risen from their lowest levels since early 2009 in recent days with the rebound in oil prices.
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