HomeBusinessUS futures are digging out of the Israeli strike-fueled slump

US futures are digging out of the Israeli strike-fueled slump

US stock futures were lower but clawed their way out of a deeper sell-off on Friday after Israel’s retaliatory attack on Iran spooked the market and fueled a rush to safe havens such as gold.

Dow Jones Industrial Average (^DJI) futures fell about 0.3%, following a 1.4% decline in after-hours trading. S&P 500 (^GSPC) futures fell 0.4%, while contracts on the tech-heavy Nasdaq 100 (^NDX) fell 0.6%, even after sharper declines.

The market initially reacted with alarm to signs that Israel had attacked an Iranian city with nuclear facilities, despite calls from allies to refrain from sparking a cycle of military violence. With few details available about the strike, oil and gold prices rose while stock and government bond yields fell, while the CBOE Volatility Index – Wall Street’s “fear gauge” – hit a more than five-month high.

These steps have been toned down as some calm returns, amid signs that the scope of the Israeli attack was limited. But investors are still on high alert, even though Iran confirmed the drone strike and said it had failed.

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Stock prices were already under pressure before the shock, as continued uncertainty over Federal Reserve rate cuts dampened sentiment.

The S&P 500 posted five straight losing days on Thursday as investors absorbed disappointing gains from Netflix (NFLX). That weighed on hopes that quarterly profits will meet high expectations and thus revive the stock rally. Shares of the streaming giant, the first of the mega-cap tech companies to report, fell 6% pre-market.

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  • This is the most important point on Netflix

    Netflix stock (NFLX) is taking a hit in the pre-market after another big quarter on almost every line item.

    Logically, the stock was perfectly priced before the report.

    But through the noise, this point from Pivotal Research’s Jeff Wlodarczak is the most important thing to take away on Netflix right now:

    “Netflix reported another high-quality result with across-the-board subscriber growth in the first quarter, driven by core US and Eurozone markets, and stronger than expected average revenue per user (successful price increases in the fourth quarter in US/UK/France) which implies the ability to generate strong subscriber growth AND increase price/expand margins, a powerful combination.”

    Since nothing in the report suggests Netflix’s fundamentals are struggling, one has to wonder if the stock’s pullback will be bought on the stock market today. You could say the shares aren’t even that expensive when compared to historical trading norms.

    Take a look at the current valuations on Netflix, compared to those from 2016 to 2021, when the company was in no way as fundamentally strong as it is today. Naturally, all data is presented to you by the Yahoo Finance platform.

    You can analyze more of this data on Netflix by visiting the stats section on the Netflix ticker page.

    Netflix shares may not be as expensive as they seem at first glance.Netflix shares may not be as expensive as they seem at first glance.

    Netflix shares may not be as expensive as they seem at first glance. (Yahoo Finance)

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