Originally published by Rivkin Securities
While the Dow Jones Industrial Average closed flat overnight, the S&P 500 made a small 0.2% gain. The Nasdaq 100 was the biggest winner with an 0.8% gain, partly on the very strong performance of Netflix (NASDAQ:NFLX). Netflix announced that it added 8.33 million new subscribers, which was substantially more than analysts expected. The share price closed up 10% on the day as the market clearly liked this news. Netflix continues to reinvest large sums into new content to continue the high growth trajectory the company has been on.
The S&P/ASX 200 also had a strong close yesterday, climbing 0.75% which represents a fairly decisive bounce from support at around the 6,000 level. Futures are pointing to a higher open this morning, currently up 17 points.
After a strong run upwards, bond yields retreated overnight with the US 10-year yield back to 2.61% but the uptrend is still in place. Gold also rallied overnight and is now close to breaking through resistance at around US$1,350. The next Federal Reserve meeting for deciding interest rates occurs in a week but market expectations are for no change in rates. The following meeting in March, however, has a 74% chance of an interest rate hike according to market pricing.
Data Releases:
- No Significant Data