Nasdaq futures rose Tuesday night after the big averages posted a second consecutive day of gains, and Netflix reported strong gains after the bell.
Futures linked to the Nasdaq 100 added 1.19%. The Dow Jones Industrial Average futures were up 165 points, or 0.54%, and the S&P 500 futures were up 0.8%.
All three major stock averages ended the regular trading day higher as earnings reports propelled a choppy market. The Dow closed about 337 points higher, while the S&P 500 gained 1.1% and the tech-heavy Nasdaq Composite gained 0.9%.
The expanded trading moves came after Netflix reported earnings and revenue that exceeded estimates, as well as strong subscriber growth for the third quarter. Shares rose as much as 14% in extended trading.
Some on Wall Street are lowering their earnings forecasts as investors worry about a recession. Gene Goldman, chief investment officer at Cetera Investment Management, said that while an economic recession could be mild, the market could struggle with those downward revisions.
“Earnings estimates are a little too high for the S&P 500, at 7% to 9% a year going forward,” he said. “Slowing economic growth and Fed rate hikes are likely to put downward pressure on earnings. As gains drive stock prices, they could put pressure on markets for some time.”
Tech earnings will be in full swing next week, but IBM and Tesla are on deck to report on Wednesday. Social media company Snap will report later in the week.
In economic data, investors are looking forward to the housing start on Wednesday. The Federal Reserve’s so-called Beige Book, the central bank’s report on the current state of economic conditions, will also be released.