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Netflix’s Unusual Post-Earnings Move; Monday’s Market Rally Lacked This: S&P 500 Futures | Stock News & Stock Market Analysis

Futures for the S&P 500 index, Nasdaq 100 and Dow industrials were little changed late Monday. Netflix (NFLX) rose slightly after reporting strong Q3 subscriber growth, suggesting a departure from recent post-earnings stock swings. More broadly, the S&P 500 and other major averages hit fresh record highs Monday, but there were no new breakouts. Facebook (FB) and CSX (CSX) are among top stocks hovering near buy points, while Apple (AAPL) made a constructive move but not a new buying opportunity.

XAutoplay: On | OffS&P 500 index futures were flat vs. fair value. Nasdaq 100 futures rose a fraction against fair value while Dow futures were slightly lower.

Netflix

Netflix reported mixed Q3 results, with earnings growth less than expected while revenue narrowly topped. But the internet TV service added 5.3 million streaming subscribers worldwide, well above views for 4.4 million, and predicted strong user growth in Q4. Netflix credited original content for attracting customers, and said it will spend $7 billion to $8 billion on its own shows next year, up from a prior forecast for $7 billion and this year’s $6 billion.

Netflix rose 1.3% to 205.25 in late trading on the stock market today, after closing up 1.6% to 202.68, hitting a new all-time high. A modest post-earnings reaction would be a change.

Here’s how Netflix has moved the day after its last several earnings reports:

  • Q1 2016: -13%
  • Q2: -13%
  • Q3: +19%
  • Q4: +4%
  • Q1 2017: -2.6% (-5% after two days)
  • Q2: 13.5%

Keep in mind that extended trading often doesn’t translate into regular-session action. After a night to digest Netflix’s results and guidance, investors may send the stock soaring or plunging.

New Highs, No Breakouts

The major market averages all hit new highs during Monday’s session, with the S&P 500 up 0.2%, the Nasdaq 0.3% and the Dow 0.4%. But there were no breakouts, according to IBD’s Marketsmith.

Facebook crept ever closer to a 175.59 flat-base buy point, rising 0.45% to 174.52. That’s a record close for Facebook.

CSX, which is slated to kick off rail earnings Tuesday morning, rose 2 cents to 52.85, below a 54.39 cup-with-handle entry.

Apple, one of the many strong Dow performers Monday, rose 1.8% to 159.88, retaking its 50-day moving average. Apple got a Keybanc upgrade on higher-priced iPhones, noting that the average price of its new handset is 12% higher than its previous generation.

Initially Monday’s move came on higher volume, which would have made reclaiming the 50-day a buying opportunity. But Apple ultimately closed on volume that was 13% below normal. Apple is building the right side of a flat base with a 165.04 entry, however.

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