- Reuters/Andres Martinez Casares
Here is what you need to know.
Netflix crushed earnings. The video-streaming giant earned $0.12 a share on revenue of $2.29 billion, topping the $0.06 and $2.28 billion that were expected. Netflix says it added 3.2 million international subscribers, well ahead of the 2 million that analysts were looking for. The stock was up by more than 20% in after-hours action.
IBM earnings beat on the top and bottom lines. IBM earned $3.29 a share on revenue of $19.2 billion, beating the $3.24 and $19 billion that Wall Street was anticipating. The company has seen declining year-over-year revenue for 18 consecutive quarters.
Disney is afraid of Twitter’s abuse problem. The entertainment giant was afraid the bullying and behavior of some of Twitter’s users would tarnish its image as a family brand if it bought the company, Bloomberg reports.
Visa’s CEO is stepping down. Charlie Scharf is stepping down as Visa’s CEO effective December 1 because “he could no longer spend the time in San Francisco necessary to do the job effectively.” Scharf told Bloomberg he wanted to be closer to his family on the East Coast.
China’s debt is surging again. New loans in China grew by 1.22 trillion yuan, easily surpassing the 1 trillion yuan that was expected. Reuters reports that the pick-up in lending was driven by a sharp jump in local government debt swaps aimed at reducing interest payments, in addition to strong mortgage demand.
UK inflation is picking up. Consumer prices in Britain rose 1% year-over-year in September, topping the 0.8% gain that economists had forecast. The return of inflation comes after the pound’s 17% plunge following the UK’s vote to leave the European Union.
Protests are happening again in Greece. Greeks demanded that their government protect wages and pensions and restore collective bargaining on Monday as leaders begin fresh negotiations with lenders.
Stock markets around the world are higher. Hong Kong’s Hang Seng (+1.6%) led the gains in Asia and Germany’s DAX (+1.2%) is out front in Europe. S&P 500 futures are up 10.50 points at 2,133.50.
Earnings reporting picks up. Domino’s Pizza, Goldman Sachs, Harley Davidson, and UnitedHealthcare report ahead of the opening bell while Intel and Yahoo release their quarterly results after markets close.
US economic data flows. CPI will be released at 8:30 a.m. ET and the NAHB Housing Market Index is due out at 10 a.m. ET. The US 10-year yield is down 1 basis point at 1.75%.