U.S. stocks closed higher with the Dow Jones and S&P 500 indices reaching record highs. Netflix's strong earnings report uplifted market sentiment, driving the major indexes to rise for the sixth consecutive week. The Dow climbed 36.86 points to 43,275.91, the Nasdaq increased 115.94 points to 18,489.55, and the S&P 500 added 23.20 points to 5,864.67.
In focus was Netflix (NFLX, Financial), which saw its shares surge over 11% following its Q3 earnings report, with both profit and revenue exceeding market expectations. The company noted a 35% quarter-over-quarter increase in ad-supported memberships. As earnings season commences, analysts have mixed feelings but indicate a positive trend.
The upcoming U.S. presidential election and Federal Reserve's policy decisions are under close scrutiny, impacting investor strategies. The market is also reacting to rising possibilities of a Republican win, reminiscent of 2016 trends where assets like banks and small-cap stocks surged.
Federal Reserve officials expressed vigilance on inflation, with some asserting the need for assertive actions should it rise. Strong retail sales data suggests consumer spending continues to propel economic growth. Analysts forecast potential further rate cuts by the Fed before year-end.
In housing data, U.S. new housing starts slightly dipped in September, while building permits also decreased, hinting at a moderation in the housing market.
Internationally, the Bank of Japan noted economic concerns without indicating immediate rate hikes, affecting currency markets.
Beyond Netflix, Tesla (TSLA) faced a new investigation over its Full Self-Driving feature following recent incidents. AMD launched a new AI chip to rival Nvidia, and Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway sold millions of Bank of America shares.
In China, Apple's (AAPL) iPhone sales showed strong growth, with significant demand for the Pro models. Analysts maintain a positive outlook for Apple's market performance in the region.
Meanwhile, energy markets saw notable declines, with WTI crude futures dropping significantly over the week, reflecting broader industry concerns.
