Markets edge higher led by Netflix's advance

Dow rose a modest 36, advancers over decliners 5-4 & NAZ jumped 113.  The MLP index was steady in the 285s & the REIT index gained 3+ to 438.  Junk bond funds fluctuated & Treasuries saw limited buying which lowered yields.  Oil was down 1+ to the 69s & gold continued substantially higher, up 28 to 2635 (more on both below).

Dow Jones Industrials 

Automaker Stellantis (STLA) plans to shutter & sell its large vehicle proving grounds in Arizona at the end of this year.  The decision is the latest cost-cutting measure by the trans-Atlantic automaker under CEO Carlos Tavares, who has been increasingly under pressure from analysts, dealers & the United Auto Workers union amid the its lagging financial performance, layoffs & overall business decisions.  The Arizona Proving Grounds covers 4000 acres between Phoenix & Las Vegas in Yucca, Arizona & has been used for vehicle testing & development since 2007.  As of Jul 2019, the operations employed 69 people, including workers represented by a local chapter of the UAW.  STLA plans to use a proving grounds in Arizona owned by Toyota Motor (TM) beginning next year.  TM opened its operations, which are costly to maintain, for other companies to use in 2021.  “Stellantis continues to look for opportunities to improve efficiency and optimize its footprint to ensure future competitiveness in today’s rapidly changing global market,” the company said.  The automaker also said it is “working with the UAW to offer proving ground employees special packages or they can choose to follow their work in a transfer of operations” but that employees could be placed on an “indefinite layoff, which would entitle them to pay and benefits for two years.”  STLA stock went up 27¢.

Stellantis to sell, close large testing facility in Arizona

Boeing (BA), a Dow stock, supplier Spirit AeroSystems (SPR) will furlough 700 workers as a strike by machinists at the plane maker enters its 6th week.  More than 32K BA workers walked off the job Sep 13 after overwhelmingly rejecting a tentative labor deal with BA, deepening the aircraft producer's financial strain & handing a new challenge to CEO Kelly Ortberg, who took the reins just over 2 months ago.  The temporary furloughs account for about 5% of SPR's US workforce.  Meanwhile, BA & its machinists’ union remain at an impasse, & SPR is considering deeper cuts.  “If the strike continues beyond November, we will have to implement layoffs and additional furloughs,” SPR spokesman Joe Buccino said.  SPR fell 47¢.

Spirit AeroSystems furloughs some 700 workers as Boeing strike continues

Netflix (NFLX) shares jumped after the media streaming giant reported 3rd-qtr earnings & revenue that beat expectations.  EPS was $5.40 for the 3-month period ended Sep 30, surpassing the $5.12 estimate.  Revenue also beat expectations, coming in at $9.83B, above the $9.77B anticipated by analysts.  Crucially, NFLX saw momentum in its ad-supported membership tier, which jumped 35% qtr over qtr.  While NFLX doesn't expect ads to become its primary growth drive until 2026, it said the ad-tier accounted for over 50% of sign-ups in the 3rd-qtr in countries where it’s available.  NFLX also gave an upbeat outlook for the Dec qtr, saying it expects 4th-qtr revenue to rise 14.7% to $10.1B & is forecasting revenue of $43-44B for 2025, which would mean growth of 11-13% from its expected 2024 revenue of $38.9B.  The stock surged 76+ (11%).

Netflix shares jump 11% after third-quarter earnings beat

Gold traded at a fresh record high, as the $ & treasury yields eased while expectations for further interest-rate cuts from the Federal Reserve & safe-haven buying continue to offer support.  Gold for Dec went up to $21 to $2729 per ounce, rising off yesterday's record close of $2707.  The price of the metal is up 4.2% over the past month as central banks in the US, Canada & Europe cut interest rates, lowering the carrying cost of owning gold, while safe-haven buying also offers support.  The $ moved lower, with the ICE dollar index last seen down 0.31 points to 103.52.  Treasury yields also eased, with the US 2-year note last seen paying 3.976%, down 0.65 basis points, while the yield on the 10-year note was down 1.6 points to 4.08%.

Gold Trading at a Record High as the Dollar and Treasury Yields Fall

Oil headed for a weekly decline, with eyes on developments in the Middle East after the death of Hamas leader Yahya Sinwar.  Brent traded below $75 a barrel, while West Texas Intermediate hovered around $71, with futures set for a drop of more than 6% this week.  The killing of Sinwar by Israeli soldiers led Pres Biden to renew calls for a cease-fire in Gaza, although Prime Minister Benjamin Netanyahu said operations are "yet to be completed."  Sentiment was lifted by a report yesterday that nationwide US petroleum inventories fell for a 4th week.  Data from China today also showed tentative signs of economic improvement in the world's 2nd-biggest economy, although apparent oil demand fell from a year earlier.  But Brent has failed to recover from sharp declines on Mon & Tues, after concerns eased that Israel would strike Iran's energy infrastructure in retaliation for an attack at the start of the month.  In the longer term, the Intl Energy Agency forecast that rising global supply could lead to a sizable surplus next year.  Brent for Dec lost 0.5% to $74.08 a barrel & WTI for Nov dipped 0.5% to $70.30 a barrel.

Oil Set for Weekly Decline With US Pushing for Truce in Gaza

Stocks were ready for records & impressive streaks as NFLX delivered powerful earnings & set the stage for Big Tech's corp results in the coming days.  But that enthusiasm barely spread to the rest of the stock market.  For the week Dow was up 407.  Meanwhile concerns about the Middle East conflict & uncertainty about the outcome of the US presidential election prompted a shift to less-risky assets like gold.