Morning Brief | Netflix Rise Over 6% After Q3 Results Beat, Chinese Concept stocks surge

Pre-market Movers

Ahead of Friday's trading, the three major U.S. stock index futures were little changed, with Dow futures rise 0.01%, S&P 500 futures rise 0.12% and Nasdaq 100 futures up 0.31% at press time.

Netflix shares rose 6% in pre-market trading after the company's Q3 revenue, net profit, and new paid subscriber growth all exceeded expectations. The outlook for the future remains strong. Viewer engagement for its series has been satisfactory, and there is still significant room for price increases to boost profit margins.

Tesla's shares were marginally down before the bell. The U.S. auto safety regulator said  it has opened an investigation into Tesla's Full Self-Driving software after reports of four collisions, including one fatal crash, involving its driver-assistance technology in low-visibility conditions. The preliminary probe will cover 2.4 million vehicles.

Chinese Concept stocks and European luxury stocks surge Friday. on fresh wave of stimulus in China. China's central bank announced funding schemes that will initially pump as much as 800 billion yuan (over $110 billion) into the stock market through newly-created monetary policy tools. This helped buyers return to the European luxury market, which relies heavily on Chinese buyers for growth. Investors gain confidence that more stimulus will boost the Chinese economy

Market Watcher

With the S&P 500 holding over 5,800, UBS Group AG's Jonathan Golub and Patrick Palfrey were the latest to raise their year-end call for the gauge. They boosted it to 5,850 from 5,600 — while lifting their 2025 forecast to 6,400 from 6,000.

"Fiscal and monetary policy uncertainty, and potential election outcomes, make 2025 returns far from certain," Golub wrote. That didn't prevent him from betting that the stock market can keep powering on, noting that risks are skewed to the upside, with moderating inflation, rate cuts, improvement in low-end consumer and business activity and broad-based profit strength.

To Scott Rubner at Goldman Sachs, US stocks are set to extend their rally into the final months of the year, pushing the S&P 500 past 6,000, as corporate buyers re-enter the market and institutional investors drop their hedges.

Pre-market Headlines

Great News for Apple: iPhone 16 Is Having A Strong Start in The Chinese Market

There are signs of a rebound in iPhone sales in China. According to data from Counterpoint Research, the iPhone 16 series saw a 20% increase in sales in the first three weeks of its launch in China. So far, the new iPhone has outperformed Apple's previous generations of products. Consumers continue to shift towards higher-priced models, with sales of the high-end Pro and Pro Max models increasing by 44% compared to the same period last year.

BP weighs sale of minority stake in offshore wind business --- Reuters

BP is considering selling a minority stake in its offshore wind business, according to four sources with knowledge of the matter, the latest effort by CEO Murray Auchincloss to scale back the energy company's focus on renewables. BP wants to reduce its share of the hefty investments required to develop these projects, remains committed to developing its major offshore wind projects. The company has also invested in solar, biofuels and low-carbon hydrogen in recent months.

Amazon AWS CEO force workers return to office, who do not support it can quit

Amazon AWS unit CEO Matt Garman controversial  5-day-per-week in-office policy, said nine out of 10 workers he has spoken with support the new policy, which takes effect in January, according to a transcript reviewed by Reuters. Those who do not wish to work for Amazon in-office five days per week can quit.

World at A Glance

US Pushes for Truce in Gaza After Israel Kills Hamas Leader

President Joe Biden said he's sending Secretary of State Antony Blinken to Israel as part of efforts to end the conflict. "Now is the time to move on," Biden told reporters after landing in Berlin, Germany. "Move on, move toward a cease-fire in Gaza."

China Moves to Support Markets After Data Showing Economy Slowed

China's central bank announced measures to support markets as data revealed the slowest economic growth in six quarters, signaling continued stimulus efforts. PBOC Governor Pan Gongsheng highlighted real estate and stock markets as key challenges needing targeted policy support.

Russia Uses North Korea Missiles With Western Parts, Report Says

Ukrainian researchers say they've discovered components produced by western companies in North Korean missiles Russia used to attack the country, highlighting the need to enforce export controls. 

Most components were manufactured by US companies, including Analog Devices Inc. and Broadcom Inc., some were made by the Swiss TRACO Electronic AG, the British XP Power Ltd and the Dutch NXP Semiconductors N.V. last year, the investigators said.

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