A better-than-expected start to the US earnings season has cushioned shares from the relentless surge in bond yields, however, an underwhelming result from Netflix proved expensive stocks that fail to beat consensus estimates will be duly punished., as the megacap tech stocks shrugged off a 15-basis point leap by two-year Treasury yields.Richard DrewP 500 that have reported first quarter results so far, 79.6 per cent have beaten profit estimates, according to Refinitiv.
The company, which thrived during lockdowns, lost 200,000 subscribers during the period, well below its forecast of adding 2.5 million subscribers, due to a combination of inflation, the war in Ukraine, and rising competition in the streaming sector. “They boomed in the pandemic and there’s naturally been less people committing to them. They are also part of the market that is more vulnerable to rising bond yields,” Dr Oliver said.Earlier this week, Morgan Stanley warned that the positive effects of inflation on earnings growth for US companies have peaked and are now more likely to be a headwind as rising costs squeeze margins and price pressures stemming from the war in Ukraine hit consumers.
Representing only 10% of companies who are to report this quarter.