Netflix Inc (NASDAQ: NFLX) stock surged almost 10% on Thursday after the streaming pioneer unveiled details about its new ad development to advertisers. The company said it had five million monthly active users for its cheaper, ad-supported option and 25% of its new subscribers were signing up for the newest tier.
“It’s why, despite all the competition out there, Netflix is the most popular streaming service today. To be the one to watch, you need everyone watching. And that’s what sets Netflix apart,” - Netflix co-CEO Greg Peters said.
Netflix launched a $7-a-month option with ads last November in 12 markets, including the U.S., as an alternative to ad-free plans that start at $10 a month. Globally Netflix ended March with 233 million total paid subscribers, including around 74.3 million in the U.S. and Canada.
US stock futures remain steady boosted by positive comments from the current speaker of the United States House of Representatives Kevin McCarthy. He said on Thursday the House could vote on the debt ceiling deal as soon as next week. Moving ahead today, the investors and market participants observe Fed policymakers Williams and Bowman's remarks for further insights along with the Fed Chair Jerome Powell's speech.
Crude oil prices hold the weekly gains. The bullish momentum lifted after the US government announced earlier this week that it would purchase up to 3 million barrels of crude oil to replenish its depleted Strategic Petroleum Reserve, with deliveries planned for August. Today, oil price dynamics will be influenced by scheduled speeches by Fed members, the US dollar movement and US debt ceiling talks.
In the currency market, the king dollar rally takes a pause on Friday Morning. The recent strong upside momentum was boosted by hawkish comments from the Federal Reserve policymakers and better-than-expected US economic data. Dallas Fed President Lorie Logan said the latest data doesn’t justify a pause in rate hikes yet. The dollar index traded flat and gave back some of the gains it made on Thursday as investors looked ahead to FED Powell's speech for more clues about the Federal Reserve's next steps.
Gold price rebounded back to above $1965. During the previous session, the metal plunged to a fresh monthly low of $1952 after the U.S. dollar index and U.S. bond yields soared to near two-month highs. On the macro side, US Dollar strength and hawkish signals from US Federal Reserve officials were the main bearish factors impacting precious metals this week. Technically, the $1950 area remains supportive while If the US dollar extends further upside strength, we could see an extension to the weakness in the precious metals.
On the data front, Philadelphia Fed Manufacturing Index declines but sees improvement from April. The Philadelphia Fed's U.S. manufacturing index rose to -10.4 in May 2023 from a nearly three-year low of -31.3 in April, and better than market forecasts of -19.8. On the other hand, the Labor Department data showed the US Initial unemployment claims fell by 22,000 to 242,000 in the week ended May 13.
Moving ahead today, the important events to watch:
Canada – Retail Sales: GMT – 12:30
US – FED chair Jerome Powell's speech: GMT – 15.00
Technical Outlook and Review
EURUSD: EURUSD slightly recovered from the early losses and moved back to 1.0800 after the pair found support buyers near a lower channel trend line. For today, 1.0750/60 remains the key support area to watch. On the upper side, we can expect a short-term bounce towards the top of the trendline if the pair regains upside momentum.
The important levels to watch for today: Support- 1.0760 and 1.0740 Resistance- 1.0810 and 1.0840.
GOLD: For today, the metal is supported at the 1950/48 area, any break below this level will open the doors to 1940 and 1935. On the flip side, if the metal breaks above 1968 it would open doors towards the next resistance area of 1972 and 1975.
The important levels to watch for today: Support- 1958 and 1950 Resistance- 1968 and 1975.
Quote of the day – “If you don't like to lose money and it affects your judgment, don't buy things that can go down a great deal.” Walter Schloss.