US stock markets closed near record highs, capping the best winning streak since July with the Dow Jones and S&P 500 both up 0.4%.
The technology sector continues to underperform with markets turning their attention to the third-quarter reporting season from a number of big names.
Netflix smashes expectations
Netflix (NASDAQ: NFLX) was the focus overnight after the company delivered an expectation-beating result following a few slower than expected quarters.
The company reported 4.38 million new subscribers in the quarter, confirming that the end of lockdowns will not be the end of streaming. It now sits at over 213 million subscribers with some 150 million having watched the Korean Squid Game series that is sweeping the world.
The result was a 16% jump in revenue and another recovery in margins, but importantly it showed new content was being delivered after a difficult period for all producers. Despite topping estimates, Netflix shares finished the day down more than 2%.
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PayPal eyes Pinterest
Shares in Pinterest (NYSE: PINS) led the Nasdaq, gaining 13% after the social media company was announced to be in late-stage talks to be acquired by PayPal (NASDAQ: PYPL). The potential offer price is rumoured to be US$70 per Pinterest share, representing a 26% premium to the company’s closing price on Tuesday.
Although this sent the Pinterest share price soaring, the opposite was true for PayPal, with shares closing nearly 5% lower.
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to open higher this morning. For a round-up of the latest news, check out my ASX 200 morning report.