Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Netflix Crushes Subscription Forecasts
Technology stocks could see another rally tomorrow if investor enthusiasm for Netflix (NASDAQ:NFLX) continues.
Shares of the video streaming company surged more than 10% in after-hours trading after it reported subscriber numbers that were much stronger than anticipated.
Netflix added 1.09 million U.S. subscribers, ahead of the 650,000 analysts predicted, according to FactSet. International subscriber additions came in at 5.87 million, topping the forecast of 4.35 million.
Netflix’s profit of 89 cents per share was well ahead of forecasts of 68 cents per share, while overall revenue of $4 billion was in line with forecasts.
2. Abbott Labs Reports; Alcoa Due After the Bell
Health care company Abbott Labs (NYSE:ABT) will be in the spotlight when it reports its latest results before the bell tomorrow.
The stock has been enjoying gains recently, rising about 15% in the last three months, despite being hit in the broader market plunge last week.
On average, analysts predict that the company earned 74 cents per share on sales of $7.7 billion.
Sales in its medical device business and diabetes care will be closely watched to see if they continue to boost top-line growth.
Financial earnings are close to wrapping up, with US Bancorp (NYSE:USB) and M&T Bank (NYSE:MTB) reporting.
Overall, the major banks reported solid earnings, with investment bank numbers especially good.
After the close of trading, aluminum giant Alcoa (NYSE:AA) will issue results.
3. Housing Starts in the Morning, Fed Minutes in the Afternoon
On the economic calendar tomorrow, the latest numbers on housing will be closely watched.
Numbers on housing starts and building permits will arrive at 8:30 AM ET (12:30 GMT).
Economists expect that housing starts fell in September to an annual rate of 1.22 million. Building permits, an indicator of future demand, are forecast to have risen to a rate of 1.278 million.
At 2:00 PM ET, the Federal Reserve will release the minutes of its last meeting, where it hiked interest rates by a quarter point.
Fed voices have been fairly hawkish since the meeting and the recent rise in bond yields has indicated the market is expecting the pace of hikes to continue.
The market is pricing in nearly an 80% chance of rates being higher after the December meeting, according to Investing.com’s Fed Rate Monitor Tool.