Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Spending Bill, Netflix Reports, Facebook Rebrand, EIA Data - What's Moving Markets

EconomyOct 20, 2021 06:37AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- The Democrats' spending bill gets pruned.  Netflix (NASDAQ:NFLX) earnings disappoint as Squid Game fails to translate immediately into a revenue bump. Tesla (NASDAQ:TSLA) and IBM (NYSE:IBM) report after the bell, while NextEra Energy (NYSE:NEE), and Verizon (NYSE:VZ) head a full early slate of earnings. The European Central Bank's most prominent hawk has called it a day, and oil prices come off recent highs after a fourth straight weekly rise in U.S. crude inventories. Here's what you need to know in financial markets on Wednesday, 20th October. 

1. Dems trim spending bill

Democratic lawmakers edged closer to agreement on how to trim their mammoth spending bill. President Joe Biden said it’s likely that the party will drop its commitment to two years fee-free tuition at community college.

Opposition from West Virginian Senator Joe Manchin has also scuppered the Clean Electricity Program, which foresees a far-ranging stick-and-carrot mechanism to force the pace of the Energy Transition by utilities.

The administration is trying to trim the scale of the package down to an overall cost of $2 trillion from an original $3.5 trillion. The costs are to be spread out over 10 years. Reports suggested that Democratic lawmakers are looking to tie up a deal by the end of the week on passing the bill.

2. Damp Squid

Netflix stock traded down in Wednesday’s premarket after becoming the first megacap to report earnings for the third quarter. The streaming giant beat forecasts for new subscribers, adding 4.4 million rather than the 3.5 million expected.

However, that didn’t translate into an upside surprise for revenue, because most were based in Asia Pacific. In the higher-paying North American market, the company eked out a subs gain of less than 75,000.

Elsewhere in the megacap universe, Facebook (NASDAQ:FB) will reportedly change its name in an effort to make itself more associated with the ‘metaverse’ it hopes to build. The move is an implicit recognition of the damage to its brand from endless disclosures about psychological damage done by its social media networks. Reports suggest that political disfavor with the company is already generating resistance to plans for its wallet service, Novi.

3. Stocks set to open flat as earnings season hits top gear; Tesla, IBM earnings eyed

U.S. stocks are set to open flat later as earnings season cranks into top gear. Some solid reports on Tuesday had helped the market to close within an ace of the record highs posted in August.

Tesla earnings after the close will be the highlight of the day, and IBM will probably be grateful for having the spotlight stolen from it. Early reporters include Verizon, NextEra Energy, Anthem, Abbott Labs (NYSE:ABT) and Kinder Morgan (NYSE:KMI).

Overnight, ASML became the latest company in the chipmaking sector to extend its assessment of how long tightness in the semiconductor market will last, but its earnings guidance still disappointed.

By 6:20 AM ET (1020 GMT), Dow Jones futures were down 4 points, effectively flat on the day, as were S&P 500 futures and Nasdaq 100 futures.

4. Hawk takes flight

The changing of the guard in Europe's largest economy will be a complete one. The Deutsche Bundesbank said Jens Weidmann has asked to be released from his duties as its president at the end of the year, citing ‘personal reasons’.

Weidmann had been appointed in 2010 at the request of Angela Merkel, whose run as Chancellor came to an end after last month’s elections (she remains in office pending the formation of a new government). 

A noted hawk on inflation, Weidmann has fought what has largely been a losing battle in the policy-making council of the European Central Bank. The new government, which will almost certainly be headed by the center-left Social Democrats, is likely to appoint someone more aligned with its outlook. Strangely for a modern central banker, there is no suggestion of his having traded for personal advantage on insider information.

5. Oil off highs after API stockbuild; EIA data due

Crude oil prices came off recent highs after the American Petroleum Institute’s weekly inventories data showed a surprisingly large rise in U.S. crude stockpiles.

The gain of 3.29 million barrels was smaller than the previous week’s but was larger than expected and the fourth straight weekly gain after a summer of rapid inventory drawdowns. U.S. government data are due at 10:30 AM ET as usual.

Concerns of near-term tightness in the market haven’t gone away, however. Iraq’s oil minister was quoted as saying prices could hit $100 a barrel in the first half of next year, well above the range desired by OPEC and its allies. By 6:30 AM ET, U.S. crude futures were down 1.1% at $81.57 a barrel, while Brent futures were down 1.0% at $84.20 a barrel.

Spending Bill, Netflix Reports, Facebook Rebrand, EIA Data - What's Moving Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Kh Dipto
Kh Dipto Oct 20, 2021 10:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jamie An
Jamie An Oct 20, 2021 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Drunken marKet by fake earning but inflation Shock is waiting, it will gonna ugly and very long winter.
სმარტ ენერჯი დიეტა გაყიდვები
სმარტ ენერჯი დიეტა გაყიდვები Oct 20, 2021 7:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
👌👌
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email