With the Government shutdown seemingly behind us now all eyes will be on company quarter 3 earnings announcements which will be used to help gauge the health of the economy. Earnings season is here and in full force with 104 of the S&P 500 now having reported earnings which have not been overly enthusiastic but good enough to keep the markets up. So far earnings for the 104 companies reporting on the S&P are up by an average of 4.4%, with 62% of the companies actually beating expectations. Excluding J.P Morgan, the financial sector has fared the best currently coming in at a 14.7% year-over-year growth.
Last weeks big winner, Google set a new intra-day high today trading at 1,019.00, before closing down at 1,003.30. Google cracked the $1,000 mark on Friday following a better than expected Q3 earnings report with Revenue rising to $14.89 billion, up 12%, yielding EPS of $10.74. Analysts had been modeling $14.79 billion and $10.36 per share. Today, after market close we saw Netflix win big as earnings more than quadrupled year over year, earning $32 million or $0.52 per share in Q3 of 2013. Netflix ended September with 31.1 million U.S. subscribers, eclipsing the estimated 29 million subscribers that HBO’s 41-year-old pay-TV channel is believed to have in the country. The also added 1.44 million subscribers outside of the U.S. to bringing its world wide total to 40.3 million users. They also do not anticipate a slow down with expectations of an additional 2.5-4.1 million worldwide&n bsp;subscribers added during the fourth quarter. Shares approached the $400.00 mark in after hours trading and are now up from $64.00 a year ago. WHO TRADED THAT WOW!!
The Dow Jones was unable to stay in the green today closing down 7.45 points to end at 15,392.20 after trading the session in a very tight 48 point range. The S&P 500 set a new intra-day trading high before ending at 1,744.66 a gain of 0.16 points. The NASDAQ also had another strong day hitting a fresh 13-year high before ending the day up 5.77 points to close at 3,920.05.
Tomorrow we will see 115 companies reporting their Q3 earnings including Amgen Inc, Broadcom Corp, CIT Group Inc, Delta Airlines Inc, and Lockhead Martin Corp. Be sure to tune into Trading Room tomorrow night at 4:00 pm PDT.