Market experts Joe Terranova, Brian Belski, and Alicia Levine discuss the recent stock market activity, potential correction, Netflix's upcoming results, and market rotation. Insights on market forces, economic signals, and updates on Domino's, Beyond Meat, Novartis, and Blackstone are also provided.
Stocks show midsummer squall, potential market weather change.
Netflix focuses on margin expansion over subscriber growth, prepares for ad business profitability.
Deep dives
Novartis Faces Questions on Growth Amid Sales Shortfall
Novartis raised its full-year earnings forecast but maintained its sales outlook after a second-quarter earnings report. Pluvicto, a drug for prostate cancer, saw sales increase over 40%, falling short of analysts' estimates. The CEO remains confident in long-term trajectory despite transitioning the drug to broader use. Novartis is actively seeking next-generation obesity drugs, focusing on cutting-edge research despite current market dynamics.
Market Expectations High for Netflix's Quarterly Results
Netflix is expected to meet its guidance for the quarter, focusing on margin expansion over subscriber growth. Analysts forecast 16.4% revenue growth, with 44% growth in earnings per share. Emphasis on profitability from the ad business as Netflix prepares to stop reporting subscriber numbers next year. Potential price increase and elimination of ad-free tier anticipated.
Blackstone shares rose despite Q2 missing street estimates, as positive trends signal future growth. Strong capital deployment and inflows indicate positive trajectory in business. Growing optimism in real estate markets with improving fundamentals. Expectations of a private equity investment resurgence post-several quarters.
Domino's Faces Challenges with Largest International Franchisee
Domino's mixed quarter includes EPS beat amid revenue in line with estimates; stock declines due to challenges from largest international franchisee in Japan and France. U.S. comps driven by transaction growth and loyalty redemptions. Company temporarily suspends net new restaurant openings amidst operational struggles.
Stocks losing steam with losses accelerating into the close. Is this a midsummer squall to wash away excesses to refresh the bull market, or a more threatening change in the market weather? Joe Terranova of Virtus Investment Partners, a CNBC Contributor, as well as BMO Strategist Brian Belski and Alicia Levine, BNY Wealth Head of Investment Strategy all join to break down the final moments of the trading day. Plus, Netflix falling as that company prepares to deliver results after-the-bell, on the heels of raised street expectations and numerous price target hikes. We discuss what to watch for when those numbers cross the tape. And, Nuveen’s Saira Malik joins to discuss the big rotation of the year and where we go from here.
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