Stocks closed higher for the third straight week on Friday as major US banks delivered impressive Q2 results. Trading revenues were of note. The Nasdaq, a big winner this year with a remarkable 17% gain YTD, underperformed this week as already crowded tech stocks spluttered.
Netflix dropped Friday. Q2 results were mixed – a slight earnings miss but a revenue beat. Subscriber growth was, predictably, impressive. In 1H 2020, NFLX added 26M paid subscribers. Throughout 2019, 28M subscribers were added. Q3 guidance was soft. The company predicts that subscriber growth will slow as people venture out again.
European leaders meet this weekend to hammer out stimulus plans. The talks are likely to have been tense, and news thus far has not been positive. Issues surrounding the relative size of loans versus grants are in focus. Monday sees the publication of new information on the Oxford vaccine in The Lancet. Some outlets last week suggested the results would be very encouraging. Traders await.
Mid-East markets are mixed. Saudi Tadawul rises slightly. Saudi British Bank gains following its appointment as a General Clearing Member at the Securities Clearing Centre Company. Kuwait’s Premier Market index is volatile, falling more than 3% on news that H.E. Sheikh Sabah Al-Ahmad al-Jaber al-Sabah had been in hospital. Stocks pared losses following the announcement of a successful operation.
By E Carter
