U.S. Stocks Rise as Investors Await Powell Remarks; Netflix Surges
Powell set to speak in New York
U.S. stocks were on the rise as investors eagerly awaited remarks from Federal Reserve Chair Jerome Powell. The market was also fueled by a wave of corporate earnings reports. Powell’s speech at the Economic Club of New York will provide valuable insights into the direction of monetary policy in the coming months.
Market Performance
At 09:42 ET (13:42 GMT), the Dow Jones Industrial Average was up 34 points or 0.1%, while the S&P 500 and Nasdaq Composite were both up 0.1%. This positive momentum comes after a sharp decline in the main indices on Wall Street the previous day, caused by rising bond yields.
Inflation and Interest Rates
Investors are concerned that a strong labor market and sticky inflation may lead to another interest rate hike by the U.S. Federal Reserve before the end of the year. New York Fed President John Williams added to these concerns, stating that rates may remain higher for longer to rein in inflation. Powell’s remarks will be closely watched for any indications of the Fed’s future monetary policy decisions.
Middle East Developments
Investors are keeping an eye on the situation in the Middle East. Israel has agreed to allow civilian aid into Gaza from Egypt, as long as it does not reach Hamas. This decision follows talks with President Joe Biden and aims to ease tensions amid ongoing conflicts.
Netflix Surges
Netflix reported impressive third-quarter results, with a surge in paid subscribers that exceeded expectations. The streaming company’s efforts to restrict account sharing contributed to a rise of 8.8 million subscribers. This positive news resulted in a more than 14% increase in Netflix stock.
Tesla’s Margins and Other Earnings
Tesla’s stock fell as a result of the company’s recent price cuts, which impacted margins. Gross margins excluding credits decreased from 18.7% to 16.1% in the third quarter. On the other hand, American Airlines Group beat profit expectations, and AT&T Inc raised its free cash flow outlook for the year, leading to increases in their respective stock prices.
Oil Prices Retreat
Oil prices experienced a decline due to uncertainty surrounding the Israel-Hamas conflict and the global supply outlook. Despite concerns over potential disruptions caused by Iran’s call for an oil embargo on Israel, the Organization of the Petroleum Exporting Countries has not indicated immediate action. Additionally, a political agreement in Venezuela may allow the country’s oil flows to reenter the global market after years of sanctions, further impacting prices.
(Oliver Gray contributed to this article.)
