31/05/2023

Investors will digest earnings results from Netflix and Johnson & Johnson, and existing home sales come out Wednesday.

Reed Hastings attends the Netflix & Mediaset Partnership Announcement, Rome, 8th October 2019.
Here are the most important things to know about Wednesday before you hit the door.
1. Netflix’s earnings after the bell Tuesday
Netflix is the first of the so-called FANG stocks to report its fourth-quarter earnings. Investors will be looking for updates on how the streaming giant is dealing with the mounting competition in the market.
Wall Street analysts are expecting the company to have earned 52 cents per share in the fourth quarter, more than the 30 cents per share it earned in the same quarter a year ago, according to FactSet.
Analysts generally have high expectations for Netflix. Goldman Sachs and Bank of America expect to see Netflix add more subscribers than it anticipated due to the company’s robust content.
Shares of Netflix have rallied 15% in the past three months, despite the launch of Disney+ in mid-November.
2. Johnson & Johnson also reports
Johnson & Johnson is set to report quarterly results on Wednesday before the bell.
The pharmaceutical and consumer packaged goods company is expected to have earned $1.87 per share in the fourth quarter, slightly down from the $1.97 a share earned in the same quarter a year ago, according to FactSet.
Johnson & Johnson has a good track record of beating Wall Street earnings estimates. According to Bespoke Research Group, it has topped expectations 95% of the time during its last 73 reports.
Shares of Johnson & Johnson have had a rocky year as the company dealt with the opioid and talc powder litigation. The stock gained less than 10% in 2019, lagging the S&P 500s near 30% rally.
3. Existing home sales to rebound?
Investors will also keep on eye on the latest home sales data on Wednesday.
Home-buying slumped 1.7% in November, bringing the annual rate to 5.35 million, as many Americans priced out of the market by rising prices and a shortage of sales listings.
The number of homes for sale at the end of November was the lowest on record for the month, according to the National Association of Realtors, which began tracking this metric in 1999. There were just 1.66 million homes on the market, down 5.7% compared with November 2018.
Economists polled by Dow Jones expect existing home sales to rise 1.5% to an annual rate of 5.43 million in December.
Major events (all times ET):
10:00 a.m. Existing home sales
Major earnings:
Johnson & Johnson (before the bell Wednesday)
Fifth Third (before the bell)
Abbott Labs (before the bell)
Texas Instruments (after the bell)