US stock markets continue to overcome the October curse, rallying again on Tuesday as some 66% of companies continue to beat even elevated earnings expectations.
The S&P 500 gained 0.7%, the Dow Jones 0.6% and the Nasdaq 0.7%.
Investors are paying close attention to earnings season as a number of short-term risks creep in, including inflation, labour and currency costs, with those companies able to pass this through to customers in favour.
Netflix hands in earnings report
Netflix (NASDAQ: NFLX) was broadly flat ahead of its quarterly report after the market closes. The company beat subscriber expectations, adding 4.4 million new subscribers during the September quarter, while revenue grew 16% year-on-year to hit US$7.5 billion.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) was the highlight overnight, with the medical company reporting some US$502 million in worldwide sales of its COVID-19 vaccine, which sent the share price 2% higher.
It was a positive story across the business with a 10% revenue increase, partially driven by price rather than volume, adding to a 3% growth in earnings.
Consumer health product sales grew 5.3% in the quarter, pharmaceuticals 13% and medical devices 8%.
Home builds slow on higher costs
In what may be a positive sign for tired homebuyers in Australia, new home construction slowed by 1.6% in the US as cost pressures bite.
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is expected to follow this positive lead from US markets to open higher on Wednesday. For all the latest, check out my ASX 200 morning report.