New York Stock Market Rises Early Amid Earnings Digest... Netflix Up 11%

The three major indices of the U.S. New York stock market are all rising in early trading on the 24th (local time), digesting corporate earnings including Netflix, which recorded the highest number of subscribers ever. Tesla and others will announce their earnings after the market closes that day.

At around 9:35 a.m. at the New York Stock Exchange (NYSE) on the day, the Dow Jones Industrial Average was trading at around 38,031, up 0.33% from the previous session. The S&P 500, which focuses on large-cap stocks, was up 0.53% at 4,890, and the tech-heavy Nasdaq index was up 0.70% at 15,333.

Currently, among the 11 sectors in the S&P 500 index, all except consumer staples are on the rise. Netflix jumped more than 11% after announcing after the previous day's close that its total number of subscribers reached a record high of 260.8 million. Google Alphabet, Amazon, and others are also showing gains in the 1% range. On the other hand, AT&T is down more than 1% due to earnings below expectations.

[Image source=Reuters Yonhap News]

Investors are closely watching corporate earnings and earnings guidance ahead of key economic data releases later this week, including the Personal Consumption Expenditures (PCE) Price Index and Gross Domestic Product (GDP). According to FactSet, more than 16% of S&P 500 companies that have reported quarterly earnings so far have exceeded Wall Street expectations.

Among big tech companies, Netflix started the earnings season smoothly the previous day. After the market closes on this day, Tesla, Las Vegas Sands, IBM, and others will release their earnings. In Tesla's case, attention is focused on this year's sales outlook and the production schedule for low-priced electric vehicles amid ongoing concerns about weakening electric vehicle demand.

This week also includes the release of key economic indicators such as the December Personal Consumption Expenditures (PCE) Price Index and the preliminary estimate of fourth-quarter growth. The core PCE for December, to be released on the 26th, is expected to rise 0.2% month-over-month, slightly exceeding the previous month's increase. However, it is forecasted to show a slowdown with a 3% increase year-over-year. The preliminary estimate of the U.S. fourth-quarter GDP, released a day earlier, is estimated to have slowed to around 1.9%.

Market expectations for an early rate cut have somewhat diminished compared to the beginning of the year. According to the Chicago Mercantile Exchange (CME) FedWatch, the interest rate futures market currently reflects about a 53% chance that the Fed will cut rates by at least 0.25 percentage points at the Federal Open Market Committee (FOMC) meeting in March after holding rates steady in January.

In the New York bond market, the benchmark 10-year U.S. Treasury yield is around 4.11%, and the 2-year yield, which is sensitive to monetary policy, is moving around 4.32%. The dollar index, which measures the value of the dollar against six major currencies, is down more than 0.6% at 102.9.

European stock markets are also on the rise. Germany's DAX index rose 1.53%, France's CAC index increased 0.88%, and the UK's FTSE index gained 0.47%.