Wall St. set to open
higher on Goldman, Netflix results
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[October 18, 2016]
By Yashaswini Swamynathan
Street was set for a higher open on Tuesday, buoyed by a slew of
better-than-expected quarterly reports, including from Netflix and
Shares of Netflix surged 18 percent to $117.86 in heavy premarket
trading after the video streaming website added many more subscribers in
the third quarter than expected.
Goldman <GS.N> rose 1.2 percent and lifted shares of other banks after
the company's third-quarter results blew past Wall Street estimates as
it raked in higher trading revenue.
A slew of better-than-expected earnings, including from big U.S. banks,
in recent days have led analysts to narrow their estimate for the drop
in third-quarter profit at S&P 500 companies to 0.1 percent from their
earlier view of 0.7 percent.
Of the 37 S&P 500 companies that have reported results until Monday, 78
percent have reported earnings that have topped analysts average
estimate, according to Thomson Reuters I/B/E/S.
"The markets are expecting an inflection point as we move from the third
to the fourth quarter, and so what they will be parsing in management
guidance is for view that earnings turn positive in the fourth quarter,"
said David Donabedian, chief investment officer of Atlantic Trust
Private Wealth Management.
Dow e-minis were up 98 points, or 0.54 percent at 8:34 a.m. ET (1234
GMT), with 27,999 contracts changing hands.
S&P 500 e-minis were up 14.5 points, or 0.68 percent, with 155,654
Nasdaq 100 e-minis were up 37.25 points, or 0.78 percent, on
volume of 31,213 contracts.
A report from the Labor Department showed consumer prices rose 0.3
percent in September, after rising 0.2 percent the previous month, due
to strong gains in gasoline and rents.
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Traders work on the floor of the New York Stock Exchange (NYSE)
shortly after the opening bell in New York, U.S., October 17, 2016.
The dollar fell from the seven-month high it held for the past five days
after Federal Reserve Vice Chair Stanley Fischer said Monday that the
U.S. economy was very close to its employment and inflation goals, but
warned on any rash changes to monetary policy.
IBM fell 2.6 percent after reporting its 18th straight quarter of
revenue decline, attracting a flurry of price target cuts from
Intel, scheduled to report after markets close, rose 1.6 percent on a
Barclays upgrade. Yahoo, also due to report in the evening, was up 0.7
Johnson & Johnson was down 0.24 percent, while Pfizer gained 0.95
percent on Pfizer's plan to ship a cheaper biosimilar to Remicade, JNJ's
top selling product. The news overshadowed J&J's slight earnings beat.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio
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