· Nasdaq 100 Forecast: Will Netflix Earnings Live Up To Expectations?
April has seen US equities further regain their footing after suffering on the back of coronavirus-induced containment procedures. As a result, economic forecasts and corporate profit targets were devastated and analysts have revised their expectations for the ongoing earnings season. That being said, not all companies are expected to spiral into disarray or unprofitability.
In fact, some corporations will look to leverage their unique business models to capitalize on these unprecedented times. To that end, Netflix has been atop many lists of expected outperformers. With government-mandated quarantine still in effect across many nations, the thesis is that all the extra time indoors will translate to more subscribers for Netflix. However straightforward it may sound, Netflix seems to posses a significant advantage over some of its brick and mortar competitors and other industries. In turn, expectations for the company’s quarterly report – due to be released Tuesday afternoon – are high.
· U.S. crude oil bounced back into positive territory on Tuesday, but a historic plunge below zero rattled investors and triggered the steepest drop in Asian stock markets in a month.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 2%.
· Japanese shares dropped on Tuesday with energy-related companies taking the brunt of a collapse in oil prices, while the virus pandemic curbed any risk appetite ahead of corporate earnings.
The Nikkei share average fell 1.97% to 19,280.78, slipping further from Friday’s near six-week high of 19,922. The broader Topix lost 1.15% to 1,415.89.
The loss widened on heightened geopolitical worries after CNN reported North Korean leader Kim Jong Un was gravely ill though South Korean and Chinese sources cast doubt.
· China shares closed lower on Tuesday, as caution recaptured world markets after U.S. crude futures recorded a historic plunge overnight, prompting investors to stay away from riskier assets.
At the close, the Shanghai Composite index was down 0.9% at 2,827.01, narrowing early losses.
· European stocks fell on Tuesday as the double whammy from a crash in U.S. crude to minus $40 per barrel and dismal first-quarter earnings reports spooked investors about the lasting damage to the global economy from the coronavirus pandemic.
BP Plc (BP.L), Royal Dutch Shell Plc (RDSa.L) and Total SA (TOTF.PA) fell between 3% and 4.0%, knocking 1.1% off the pan-European STOXX 600 index at 0702 GMT. Miners .SXPP also tracked a decline in commodity prices. [MET/L]
Reference: CNBC, Reuters
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