Nasdaq futures jumped Tuesday evening after the most important averages posted a second straight day of gains, and Netflix reported strong earnings after the bell.
Futures tied to the Nasdaq 100 added 1.2%. Dow Jones Industrial Average futures gained 0.4%, and S&P 500 futures rose 0.7%.
All three of the most important 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 prolonged trading moves got here after Netflix reported earnings and revenue that beat estimates in addition to strong subscriber growth for the third quarter. Shares surged as much as 14% in prolonged trading.
Some on Wall Street are resetting their earnings projections lower as investors worry a few recession. Gene Goldman, chief investment officer at Cetera Investment Management, said that while an economic recession might 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 12 months going forward,” he said. “Slowing economic growth and Fed rate hikes will likely put downward pressure on earnings. Because earnings drive stock prices, they may pressure markets for a while.”
Tech earnings shall be in full swing next week, but IBM and Tesla are on deck to report Wednesday. Social media firm Snap will report later within 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 present state of economic conditions, will come out as well.
