Stock Market

Nasdaq futures rise for a third day as better-than-expected Netflix results keep tech gains going

Peter Boockvar digs in on today's market action

Nasdaq futures rose Tuesday evening after the major averages posted a second straight day of gains, and Netflix reported strong earnings after the bell.

Futures tied to the Nasdaq 100 added 1.19%, or 133.75 points. Dow Jones Industrial Average futures gained 165 points, or 0.54%, and S&P 500 futures rose 0.8%.

All three of the major stock averages finished the regular trading day higher, as earnings reports boosted a choppy market. The Dow closed higher by about 337 points, while the S&P 500 gained 1.1% and the tech-heavy Nasdaq Composite added 0.9%.

The extended trading moves came after Netflix reported earnings and revenue that beat estimates as well as strong subscriber growth for the third quarter. Shares surged as much as 14% in extended trading.

Some on Wall Street are resetting their earnings projections lower as investors worry about a recession. Gene Goldman, chief investment officer at Cetera Investment Management, said that while an economic recession could be mild, the market could struggle with those downward revisions.

“Earnings estimates are a bit too high for the S&P 500 at 7% to 9% per year going forward,” he said. “Slowing economic growth and Fed rate hikes will likely put downward pressure on earnings. Because earnings drive stock prices, they could pressure markets for some time.”

Tech earnings will be in full swing next week, but IBM and Tesla are on deck to report Wednesday. Social media firm Snap will report later in the week.

In economic data, investors are looking forward to housing starts on Wednesday. The Federal Reserve’s so-called Beige Book, the central bank’s report on the current state of economic conditions, will come out as well.

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