Here are five key points investors should be aware of as the trading day begins:
Markets Overview
- Netflix Shares Surge
Netflix’s stocks experienced a significant increase during U.S. premarket trading after the company released third-quarter earnings that exceeded expectations. The streaming service reported earnings of $5.40 per share, surpassing the LSEG consensus estimate of $5.12 per share, with revenue reaching $9.83 billion, above the expected $9.77 billion. Although not the primary growth driver yet, Netflix saw a 35% increase in ad-tier memberships quarter-over-quarter and plans to introduce the service in Canada next quarter, with further expansion planned for 2025. Analysts at Citi anticipate that Netflix’s stock will continue to rise based on the earnings report.
- Leadership Change at CVS
CVS has announced a change in its executive leadership, replacing CEO Karen Lynch with David Joyner, a pharmacy executive, effective immediately. This change comes in response to declining profits and a decreasing share price, alongside pressure from an activist investor demanding changes. In addition, CVS issued estimated third-quarter results, advising investors to disregard the guidance provided in August.
- Google’s New Leadership
Google has appointed Nick Fox to replace Prabhakar Raghavan as the head of its search and ads division. Raghavan will transition to the role of chief technologist after leading teams within the company for 12 years, as stated by Alphabet CEO Sundar Pichai. Under Fox’s leadership, Google’s Knowledge and Information division will encompass search, ads, and commerce products. This restructuring aims to enhance Google’s agility in the competitive artificial intelligence arena, amid several ongoing antitrust lawsuits related to its search and ads businesses.
- Hamas Leader Killed
Israeli Foreign Minister Israel Katz announced that Hamas leader Yahya Sinwar has been killed by Israeli military forces. Sinwar, who led Hamas in the Gaza Strip and assumed leadership of the organization in August, following the assassination of former political chief Ismail Haniyeh, is reported to have orchestrated the October 7 attacks on Israel. His death is considered a significant blow to Hamas in the ongoing conflict with Israel. The succession plans following Sinwar’s death and its implications on stalled ceasefire negotiations remain uncertain.
This report includes contributions from CNBC journalists Ryan Browne, Sarah Whitten, Jacob Pramuk, Sara Salinas, Jennifer Elias, Ece Yildirim, Ruxandra Iordache, and Natasha Turak.
