Here are five important updates for investors to begin the trading day:
Markets:
Netflix Shares Surge:
Shares of Netflix experienced a rise in U.S. premarket trading after the company released third-quarter earnings that exceeded expectations. The streaming giant reported earnings of $5.40 per share, surpassing the LSEG consensus estimate of $5.12 per share. Revenue reached $9.83 billion, which is higher than the anticipated $9.77 billion by analysts. While not yet its primary growth driver, Netflix saw a 35% increase in ad-tier memberships quarter over quarter. The company plans to expand this service to Canada in the next quarter and more extensively in 2025. Citi analysts noted that they anticipate Netflix shares to trade higher on Friday, following this earnings report.CVS Leadership Change:
CVS announced the replacement of its CEO, with Karen Lynch stepping down and David Joyner, a pharmacy executive, assuming the role effective Thursday. The company has been facing challenges, including declining profits and a decreasing share price, alongside pressure from an activist investor for organizational changes. On Friday, CVS also released estimated third-quarter results and advised investors against relying on the guidance issued in August.Google Appoints New Search Head:
Google declared the replacement of Prabhakar Raghavan, the head of its search and ads division, with longtime executive Nick Fox. Raghavan will transition to the position of chief technologist after leading teams for 12 years. Alphabet CEO Sundar Pichai announced that Fox will oversee Google’s Knowledge and Information division, which includes search, ads, and commerce products. This restructuring is part of Google’s strategy to advance more rapidly in the burgeoning artificial intelligence sector, amidst growing competition and ongoing antitrust lawsuits related to its search and ads businesses.- Hamas Leader Reportedly Killed:
Israeli Foreign Minister Israel Katz confirmed that Hamas leader Yahya Sinwar was reportedly killed by Israeli military forces. Sinwar had been the head of Hamas in the Gaza Strip and took over as the political leader of the Iran-backed group in August after the assassination of the former chief, Ismail Haniyeh. Sinwar’s death is considered a significant blow to Hamas amidst the ongoing conflict initiated by the Hamas attacks on Israel on October 7, which Sinwar was accused of orchestrating. It remains unspecified who will succeed Sinwar or how his death will influence the stalled cease-fire negotiations.
