Closing Bell Closing Bell Overtime: Pavlov Markets, Big Earnings & the Geopolitics of Business 10/21/25
Oct 21, 2025
Investors are reacting like Pavlov's dogs, eagerly buying at market opens. Netflix's mixed earnings reveal a Brazilian tax hit, with insights on future ad revenue and live sports. Geopolitical risks, especially concerning Ukraine and China, pose major concerns for investors, as discussed by Bill Browder. Meanwhile, Tesla's upcoming results raise skepticism about robo-taxi timelines, while aerospace firms see strong demand. The tech sector faces competition, prompting discussions on content spending and AI's role in innovation.
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Netflix's EPS Miss Was Largely One-Off
- Netflix missed EPS due to a $620 million charge tied to a Brazilian tax dispute, not core operations.
- The company still guided Q4 revenue and highlighted faster ad revenue growth into 2025.
Markets Exhibit Pavlovian Dip-Buying
- Traders of all sizes increasingly buy into market rebounds at the open and on early futures lifts.
- Steve Sosnick says this Pavlovian dip-buying lifts markets daily and spans retail to large active traders.
Monitor Mega-Cap Momentum For Trade Signals
- Watch perennial leaders like NVIDIA and Tesla for buy interest and momentum.
- Steve Sosnick advises traders to expect continued buy-the-dip behavior even after steep run-ups.