Global market report - October 17

US markets' strong gains on Tuesday helped global equities claw back some of last week's losses

James Gard 17 October, 2018 | 5:00PM

North America

Last week’s volatility has been set aside by encouragement from earnings season. The Nasdaq was up nearly 3% yesterday as tech stocks swung back into favour. Netflix (NFLX) put its weak second quarter behind it and posted record subscriber numbers yesterday. The company’s shares rose around 4% during market hours and are now up 10% in after-hours trading. Morningstar analysts rate Netflix as a one-start stock, meaning that it is significantly overvalued – they ascribe a fair-value estimate of $120 per share to the stock, against a current price of around $350 per share.

Netflix earnings are a useful bellwether for the tech sector as they come before the biggest tech giants. Last time a sharp fall in Netflix shares gave investors fair warning that they would be unforgiving in face of any missed expectations from the sector’s biggest names, and so it proved with Facebook (FB). Next Thursday Amazon (AMZN) and Google parent company Alphabet (GOOGL) release results.

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James Gard

James Gard  James Gard is subeditor for