US Market Close: Netflix Earnings, S&P 500 Fatigue, Gold Tumbles

Market Performance and Key Movers

• 📉 The S&P 500 closed little changed, showing signs of buyer exhaustion despite a rally nearing all-time highs.
• 📈 The Dow Jones Industrial Average closed in the green, up over 200 points, boosted by a bullish outlook from 3M Co.
• ⚠️ Netflix shares fell significantly in after-hours trading following its earnings report, down about 7.3%.
• 📉 Texas Instruments also saw its shares drop in after-hours trade, down about 4%, after a tepid forecast.

Earnings and Financials

• 💡 Netflix reported fiscal third quarter free cash flow of $2.66 billion and EPS of $5.87, a beat on EPS but a miss on revenue.
• 💰 A tax dispute with Brazilian authorities cost Netflix approximately $619 million, impacting its third-quarter earnings.
• 📊 Texas Instruments reported third-quarter EPS of $1.48, missing estimates, and provided fourth-quarter revenue guidance at the low end of expectations.
• 🏦 Western Alliance and Zions shares rose in anticipation of their earnings reports, indicating some easing of concerns about regional banks.
• 🚀 Intuitive Surgical shares surged over 12% in after-hours trading after reporting a beat on third-quarter adjusted EPS.

Economic and Sector Insights

• 💰 Gold and silver experienced a significant rout, with steep losses as the dollar rose and investors locked in profits.
• 🏦 Despite recent de-risking, global macro hedge funds and long-only strategies maintain their highest stock exposure in over a year.
• 🌐 International markets for Netflix, particularly Latin America and APAC, fell short of revenue expectations, while US, Canada, and Europe slightly beat them.
• 🏭 Mattel shares dropped significantly, down about 20% in aftermarket, due to tariff uncertainty delaying Christmas orders and a sales dip.
• 🛒 Consumer discretionary, industrials, and health care were the only sectors finishing in the green, while utilities, communication services, and materials lagged.