Netflix and sell:
No matter how fast Netflix signs up new users, its investors are not happy. They added 1 million fewer subscribers than expected and the shares got poised. Reed Hastings, Netflix’s CEO, affirmed that it is just how business works, with ups and downs. They had made $3.9 billion in sales and $384 million in profit, and on Monday they closed at $400 per share. Mark Kelley, an Instinet analyst, had a target of $370 being afraid of the competitive landscape.
Prime time for Amazon:
Monday got Amazon suffering from periodic outages on mobile and desktop due to supra-agglomeration because of the Prime Day sale. Because of this error, their sales fell.
Big Tech faces Congress:
Facebook, Google, and Twitter were asked by the Senate and House Intelligence Committees to explain how they filter content while Russia’s meddling in US politics. The shares of Facebook soared after Mark Zuckerberg, Facebook’s CEO, after following the Cambridge Analytica data breach, testified before Congress.
A new deal for Europe and Japan:
Japan and the European Union had made a deal to remove trade barriers and slash tariffs. Furthermore, they made an agreement to recognize each other’s data protection systems as “equivalent.”
“Data is the fuel of [the] global economy, and this agreement will allow for data to travel safely between us to the benefit of both our citizens and our economies,” said EU Commissioner Věra Jourová.
Global market overview:
Even though in early trading European markets were significantly higher, Asian markets ended up mixed. After plunging 4% on Monday, US oil prices posted a small gain. On Monday S&P 500 dropped 0.1%, Nasdaq declined 0.3%, and Dow Jones industrial average added 0.2%.
Before the open Goldman Sachs (GS), Charles Schwab (SCHW), Progressive (PGR) Johnson & Johnson (JNJ), and UnitedHealth (UNH) will release earnings.