US stock markets open red: Gold dips 2.1%, Netflix falls 6% after weak earnings and tax spat
The stock market in the US on Wednesday morning opened with a dramatic start as gold prices went down in red again, reported Market Movers. There has been a constant update in gold prices for the last few months. Last evening, the prices plunged 5%. However, Wednesday morning brought in some bad news.
Meanwhile, another stock grabbing headlines on October 22 is streaming giant Netflix. According to Reuters, Netflix has disappointed Wall Street in its latest earnings. The streaming giant witnessed an overnight fumble in its stocks, dropping almost 6%.
From gold to Netflix, and Tesla to IBM, here is all you need to know about the share market on Wednesday morning.
Gold recoils after plunging last evening
Gold is witnessing one of the most radiant years, with a constant upgrading in its price. However, Wednesday morning brought some disappointing news. As per Investing.com, the prices of spot gold have been down by 2.1%. It currently costs $4039,48 for one ounce. Meanwhile, US gold futures have also reported some fall. It now costs $4,050.64 per ounce after a 1.4% decline.
On Tuesday evening, the prices plunged by 5%, marking one of the steepest one-day declines in prices since 2020.
Netflix faces a 6% drop
In extended hours trading, the shares of Netflix saw a drop of 6%. This is far behind the Wall Street expectations for the streaming giant. The fall has been a result of the company’s issues with tax authorities in Brazil, said the report. The spat could also impact the annual margins of the company.
Tesla and IBM to report later today
Two major stocks to look at today are Tesla and IBM. Reuters reported that both companies could outperform for the quarter, going beyond the US market’s expectations. Tesla has performed well in the quarter and has already announced record-breaking deliveries. The company’s sales graph is currently positive.
International events to focus on
With major international events taking place across the world, especially in relation to the US, the market may see more changes later in the day. Russian President Vladimir Putin’s meeting with US President Donald Trump was kept on hold on Tuesday as Moscow has yet to agree to the ceasefire agreements with Ukraine. Meanwhile, Japan’s newly appointed president could introduce new policies to tackle inflation in the country.
FAQs
1. Why are gold prices dropping?
Gold dropped 2.1% on Wednesday after a 5% plunge on Tuesday, its steepest fall since 2020, driven by market volatility.
2. What caused Netflix shares to fall?
Netflix stock dropped 6% in extended trading after disappointing earnings and a tax dispute with Brazil.
3. What’s expected from Tesla and IBM today?
Tesla and IBM are set to report earnings later today, with analysts expecting both to outperform market estimates.