Netflix, Johnson & Johnson and Goldman Sachs will report their earnings, looking to build on the positive sentiment created by the rest of the banking sector and Pepsico. US industrial production data will be released today, as well as the monthly survey from the National Association of Home Builders. Pound Sterling and bonds took a breather amid uncertainty over whether the Bank of England will continue “quantitative tightening”, while gas prices in Europe fell as the EU hit its storage targets ahead of schedule. Here’s what you need to know about the financial market on Tuesday, Oct. 18.

1. Netflix aims to break its losing streak

Netflix Inc (NASDAQ:NFLX) is looking to break its 2Q losing streak when it releases its earnings report for the 3 months through September after the close.

The streaming giant, whose stock plunge this year epitomized a sharp shift in market sentiment toward long-term growth stocks, projected a net gain of 1 million subscribers, helped by a better quarter for new content.

The data will shed light on how loyal the company’s customer base has been after a string of price increases. Most market research shows that the company remains the latest streaming service for those who need to cut their monthly costs.

2. Calm after the storm in the UK market; confusion over Bank of England quantitative easing

Calm returned to the U.K. financial market after new Treasury Secretary Jeremy Hunt ripped into Prime Minister Liz Truss’ economic strategy, canceling nearly all of her proposed tax cuts.

The collapse in UK government bonds caused by Truss’ plans swept through the global financial market, especially after the Bank of England warned of a “significant risk to UK financial stability.” Bond yields rose strongly on Monday but “ran out of steam” on Tuesday after the Financial Times reported that the Bank intended to delay the start of quantitative tightening due to concerns about market stability.

Newswires later quoted a Bank spokesman as calling the FT report “inaccurate.”

3. the American stock market will open with growth, continuing the recovery

The U.S. equity market is set to build on the gains made in Monday’s opening trade, buoyed by developments in the U.K. and generally strong third-quarter earnings reports from the key financial sector.

By 06:20 ET (10:20 GMT), Dow Jones futures were up 394 points, or 1.3%, while S&P 500 futures were up 1.5% and Nasdaq 100 futures were up 1.7%. The Nasdaq outperformed on Monday, posting an impressive 3.4% gain, while the Dow was up about 1.5% and the S&P was up 1.8%.

Bank of America (NYSE:BAC), Bank of New York Mellon (NYSE:BK), and Charles Schwab (NYSE:SCHW) all comfortably beat expectations on Monday, releasing new data that makes it hopeful that Goldman Sachs (NYSE:GS) can repeat such gains before trading opens today, though the news will likely be dominated by obvious restructuring plans.

Johnson & Johnson (NYSE:JNJ), Truist, State Street (NYSE:STT), Hasbro (NASDAQ:HAS), and Omnicom (NYSE:OMC) will also report in early trading. Industrial production data for September, due out at 09:15 a.m. ET (1:15 p.m. GMT) will head the econodata calendar, along with the monthly “sad story” from the National Association of Home Builders (NAHB) survey.

Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT) will also be in the spotlight after reports of Intel’s reduced ambitions for its Mobileye spinoff and job cuts at the software giant.


4. Deprivation of Exxon’s stake in Sakhalin

The Kremlin stripped Exxon Mobil (NYSE:XOM) of its stake in the Sakhalin-1 offshore oil field, a project that has come to symbolize the revival of the Russian oil industry after the collapse of the Soviet Union.

5. Oil prices hold near 2-week low amid sharp decline in gas prices in Europe

Crude oil prices fell to their lowest level in 2 weeks amid lingering concerns about the outlook for global demand after fresh signs of slowing growth in key economies.

By 06:30 ET, WTI futures were down 0.1% to $84.42 a barrel, while Brent futures were down marginally to $91.61.

Earlier, a closely watched indicator of sentiment in the German economy suggested the outlook had deteriorated further, although there was better news from the energy supply side over the past 24 hours. German Chancellor Olaf Scholz said he will allow all 3 nuclear reactors, which are due to shut down in December, to operate until at least April. In addition, industrial data showed that the EU, and Germany in particular, met their targets for filling gas storage ahead of schedule. Benchmark gas futures fell nearly 10% to a 4-month low.