Netflix soars after beating estimates. Netflix's (NFLX) shares jumped 11.75% premarket after the company's Q3 earnings topped consensus, with EPS coming in at $0.52, net profit quadrupling to $32M, and revenue climbing 22% to $1.1B. The video service added 1.29M subscribers in the U.S. to give it 31.09M customers vs. the 30M that was expected and 28.7M at rival HBO, although the latter is way more profitable. Netflix believes it will add another 6M U.S. streaming customers in 2014 on top of the 6M it expects to see this year.
Apple set to unveil new iPads. Amid increasing competition from lower-cost rivals and falling market share in the tablet market, Apple (AAPL) is today due to unveil a thinner and lighter version of its standard 9.7-inch iPad, which is expected to use thin film instead of glass. Apple is also set to introduce an update to the iPad mini that will incorporate a "retina" high-density display similar to the one used in the regular iPad.
Equity markets wait on U.S. jobs report. Global stocks were flat-to-mixed at the time of writing as investors awaited the delayed U.S. jobs report, which is due out later today. Economists estimate that nonfarm payrolls rose by 180,000 workers in September, up from 169,000 in August, although the unemployment rate is expected to have held steady at a near five-year low of 7.3%.
Top Stock News
DuPont beats by $0.04, misses on revenues. DuPont's (DD) Q3 EPS came in at $0.45 and beat consensus by $0.04, while revenue climbed 5% to $7.73B but missed expectations by $50M. "Third-quarter sales volumes and operating earnings were stronger across most businesses compared to a soft quarter last year," said DuPont Chairperson and CEO Ellen Kullman. "Fourth-quarter operating earnings will be up substantially from last year. For the full year, we are on track to deliver modest earnings growth."
ARM's profit rises but shares fall. ARM Holdings' (ARMH) Q3 pretax profit jumped 36% to £92.6M as revenue climbed 27% to £184M, with both figures topping forecasts. The company, whose chip designs are used in a variety of consumer devices - including iPhones - has a record order backlog and a "robust opportunity pipeline." It expects Q4 revenue of $290M, "assuming the macroeconomic situation does not deteriorate significantly." However, shares dropped 2% premarket after royalty revenue rose a less-than-expected 13% to $137.1M.
Tri Pointe nears purchase of Weyerhaeuser home unit for $2.7B. Tri Pointe Homes (TPH) is reportedly in advanced talks to buy Weyerhaeuser's (WY) homebuilding unit for $2.7B. Weyerhaeuser, which said in June that it was reviewing strategic options for the business, hopes to finalize a sale within the next two weeks. Taylor Morrison Home (TMHC) and Brookfield Residential Properties (BAM) are among the companies that have also been in talks with Weyerhaeuser.
Nokia introduces first tablet and phablets. While Apple (AAPL) is on to its 5th-generation iPad, Nokia (NOK) has just unveiled its first tablet, as well as two large-screen smartphones, or phablets. The Lumia 2520 tablet uses Microsoft's Windows 8.1 RT operating system, and has a 10.1 inch screen and 4G LTE capability. Nokia is due to start selling the device by the end of the year in the U.S., U.K. and Finland for $500. Nokia's shares were -0.3% premarket.
Novartis profit falls 3.1%; raises FY outlook. Novartis' (NVS) Q3 core net income dropped 3.1% to $3.1B as sales rose 4% to $14.3B. The Swiss pharmaceuticals giant is reviewing units that don't have "global scale and critical mass," CEO Joseph Jimenez said, and will look at ways to "either strengthen them or to think about other opportunities." Novartis also raised its FY outlook, due to the lack of generic competition to its Diovan blood-pressure drug in the U.S.
CFTC ups pressure on banks in forex probe. As part of the global probe into possible currency-market manipulation, the Commodity Futures Trading Commission has reportedly told the major forex-dealing banks to scour their records for any evidence of wrongdoing. Citigroup (C) and Deutsche Bank (DB) are among those so-ordered, with Deutsche spending millions on the task. Neither lender, though, has yet handed over any material to the CFTC.
Top Economic & Other News
Rising house prices put China in a bind. New home prices in China's four major cities - Shenzhen, Guangzhou, Shanghai and Beijing - rose at the fastest rate since January 2011 last month, again highlighting the dilemma that the government finds itself in. Overall, prices increased in 69 out of 70 tracked cities. On the one hand, the trend has prompted fears of a property bubble; on the other, dampening down the sector with more buying restrictions could harm the overall economy.
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In Asia, Japan +0.1% to 14713. Hong Kong -0.5% to 23316. China -0.8% to 2211. India -0.1% to 20865.
In Europe, at midday, London +0.2%. Paris flat. Frankfurt -0.1%.
Futures at 6:20: Dow flat. S&P -0.1%. Nasdaq flat. Crude -0.3% to $98.96. Gold -0.3% to $1311.8.
Ten-year Treasury Yield flat at 2.61%.
Notable earnings before today's open: AKS, ARMH, CIT, CNC, COH, CSL, DAL, DD, EMC, ENTG, FCX, FMER, FRX, GNTX, HOG, IDXX, IRWD, ITW, KMB, LMT, LRY, LXK, MHFI, NUS, NVS, PCH, PII, PNR, R, RAI, RF, RSH,SIAL, SNV, STT, TRV, UTX, WAT, WHR, WIT
Notable earnings after today's close: ABAX, ACE, AEC, ALTR, AMGN, APOL, BCR, BRCM, CBST, CLS, CNI, CREE, DTLK, FBC, FTI, FULT, GLF, HA, IRBT, JNPR, MTSN, NBR, PACB, PNRA, RFMD, RHI, STM, TSS, UIS, USNA, VASC, VOCS, WCN, XOOM, ZIXI
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