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Dow is down, but technology is up after Netflix’s performance.

Netflix subscribers outperform expectations.

However, the tech sector is set to outperform today after Netflix smashed expectations for its fourth-quarter earnings. The streaming giant added 8.84 million subscribers in the last three months of 2018 and reported a 36% rise in revenue year-on-year.

Netflix shares are up over 6% premarket as investors cheer the news, while other tech stocks such as Amazon, Alphabet, and Apple have all gained ground too, following suit. Meanwhile, Facebook has been one of the biggest losers on Wall Street this week but could benefit from Netflix’s strong performance today given that it owns a stake in the streaming service provider through its investment arm, CapitalG.

Overall though, it looks like another mixed day ahead, with investors keeping an eye out for any further developments on US-China trade talks or Fed speakers before making their next move.

Dow is down, but technology is up after Netflix's performance.
Netflix

Netflix Company Information

It looks like Netflix is having a great start to the year, with subscriber numbers much higher than expected. The streaming giant reported 7.66 million new subscribers in its first quarter, beating analysts’ estimates of 4.5 million and sending shares soaring pre-market today. This strong performance was bolstered by an optimistic outlook for Q1 revenue growth of 4% annually, a welcome sign as many companies struggle amidst the pandemic’s economic effects.

Google parent Alphabet also saw positive news this morning after announcing plans to cut 6% of their workforce (around 12,000 jobs) due to slowing growth rates; however, shares are still up pre-market as investors remain confident about their prospects despite short-term losses from job cuts. Tesla is also on the rise this morning after reports that price cuts have helped boost demand amid intensifying competition in the electric vehicle market space—another example of how businesses can adapt during difficult times and come out ahead!

USD climbs, GBP falls in currency markets

The USD is rising after two days of declines, boosted by hawkish Federal Reserve chatter. Federal Reserve Vice Chair Lael Brainard reiterated the central bank’s commitment to supporting the US economy through its accommodative monetary policy stance. This has supported a stronger dollar, with investors becoming increasingly confident that there will be no further rate cuts in 2023 and that inflationary pressures could soon start to build as economic activity picks up.

This sentiment was bolstered by better-than-expected US housing data, which showed new home sales increasing 1% month over month in December, beating expectations for a 0.7% decline and indicating an improving outlook for the sector going forward into 2023. The positive news from the US has weighed on other major currencies such as GBP/USD and EUR/USD, which have both seen declines following their respective domestic data releases today, with UK consumer confidence slipping back towards a 50-year low while German PPI fell slightly below forecast at 21%.

Overall, it appears that investors are continuing to favor haven assets such as gold but also riskier assets like stocks due to increased optimism around vaccine rollouts globally, which should help support global growth this year despite some lingering uncertainty surrounding Brexit negotiations between Britain and Europe. Going forward, we expect more upside potential for the USD if upcoming economic reports continue to show signs of improvement across sectors given current market conditions.

GBP/USD -0.3% at 1.2350

EUR/USD -0.1% at 1.0823

Oil prices are falling as inventories increase.

Oil prices are heading higher, and oil is expected to book a weekly gain, marking the second straight weekly rise. This recent surge in prices is due largely to the improving outlook for the Chinese economy as it reopens after COVID-19, which has been welcomed by both OPEC and the IEA in their monthly reports. The International Energy Agency (IEA) expects global oil demand to reach a record high of 103 million barrels per day (b/d) in 2023, while OPEC forecasts an increase of 6 million b/d over 2019 levels.

The US Federal Reserve’s decision on interest rates will also have an impact on oil markets, with bets rising that they will start slowing down rate hikes before pausing them in 2023. This could help avert or at least mitigate the effects of a recession if it occurs this year.

In addition, investors should keep an eye out for Baker Hughes rig count data, which is due later today; this could provide further insight into how much supply there might be available going forward and thus influence pricing decisions accordingly.

WTI crude trades +0.525% at $79.59

Brent trades at +0.55% at $85.02