Subscriber progress can be prime of thoughts for traders and merchants when Netflix stories first-quarter outcomes after the bell Tuesday.

Only a 12 months in the past, the corporate reported its first subscriber loss in additional than decade as competitors within the streaming market ramped up, forcing shares to crater within the session that adopted.

Analyst estimates are calling for earnings of $2.86 a share on $8.18 billion in income, in keeping with these polled by Refinitiv.

Together with subscriber numbers, Wall Road can be looking out for data associated to the corporate’s ad-supported tier, launched final 12 months, and the streamer’s initiatives to crack down on password sharing. Netflix in February outlined pointers for customers in 4 international locations.

In line with UBS analyst John Hodulik, promoting tiers alone might ship a ten% tailwind to income over the approaching years. The analyst can be watching how paid sharing will affect the corporate’s near-term progress, he added.

Wells Fargo’s Steven Cahall, who stays bullish on Netflix heading into earnings, mentioned in a current word that he expects administration to look “optimistic on the carry to the P&L from paid sharing implementation.”

“This could push estimates increased, and helps NFLX’s continued evolution,” he wrote.

Some Wall Road analysts, nevertheless, stay cautious heading into the print, with Goldman Sachs’ Eric Sheridan standing by his promote score. The analyst additionally expects in-line subscriber efficiency, he mentioned in a current word.

To date this 12 months, the inventory’s gained 13.3% after a roughly 51% stoop in 2022.

— Samantha Subin

With barely greater than half of the buying and selling month accomplished, the Dow is up 2.1%.

April has traditionally been the perfect month of the 12 months for the 30-stock index, with a median advance of 1.9% going again to 1950. By comparability, the Dow has added simply 0.7% when averaging all months in that point interval.

Earlier pre-election years are sometimes even higher for April. The Dow has gained 3.9% when averaging each April within the years continuing an election since 1950.

With the two.1% advance, the Dow has carried out the perfect of the three main indexes to this point this month. The S&P 500 has gained 1%, whereas the Nasdaq Composite has shed 0.7%.

CNBC Professional subscribers can learn extra about why April is the perfect month for the blue-chip index right here.

Financial institution of America CEO Brian Moynihan mentioned Tuesday he sees solely a slight recession hitting the U.S. as customers stay in stable form.

“Every part factors to a comparatively delicate recession given the quantity of stimulus that was paid to folks and the cash they’ve left over,” Moynihan mentioned within the financial institution’s quarterly earnings name. “On the finish of the day, we do not see the exercise on the patron facet slowing at a tempo that may point out that, however we’d see industrial clients are being extra cautious.”

Moynihan mentioned that Financial institution of America’s analysis group has been constant in calling for a gentle downturn in mild of the Federal Reserve’s aggressive fee hikes. The financial institution is predicting annualized GDP contraction within the vary of half to 1 share level within the subsequent three quarters earlier than going again to optimistic progress, he mentioned.

— Yun Li

Tax Day has arrived, and the most recent refunds are trying mild in comparison with final 12 months.

The typical refund quantity is $2,878 for the week ending April 7, the most recent knowledge out there from the Inner Income Service. That is a decline of greater than 9% from a 12 months in the past. Largely this decline is pushed by the elimination of sure tax credit after the expiration of pandemic-era reduction, together with an growth of the kid tax credit score.

Do not anticipate Uncle Sam to spice up refunds because the IRS continues to course of a deluge of 2022 returns, that are due on April 18.

“As tax refunds proceed to lag final 12 months into April, we see little likelihood of reaching final 12 months’s refund ranges,” wrote Deutsche Financial institution analyst Krisztina Katai in an April 18 report. She referred to Citigroup and Wells Fargo warning of softening client spending on their first-quarter convention calls.

Naturally, there is a method for traders to play these smaller tax refunds – and a extra challenged client who’s now stretching a less-generous examine from the Tax Man.

Defensive names, comparable to Walmart and Greenback Tree are among the many “gamers effectively positioned to make the most of value-seeking customers,” she wrote.

— Darla Mercado, Michael Bloom

Shares of schooling know-how inventory PowerSchool rose 3.4% after Goldman Sachs mentioned the inventory was value shopping for.

Analyst Gabriela Borges upgraded the schooling know-how inventory to purchase from impartial. Her $24 value goal implies the inventory will rally 20% from the place it closed on Monday.

“We imagine the breadth of PowerSchool’s platform is exclusive and this solidifies its management place,” she mentioned in a word to shoppers Tuesday.

Regardless of the rally, the inventory has nonetheless fallen greater than 10% this 12 months. CNBC Professional subscribers can learn the total story right here.

Expedia is undervalued and the corporate’s administration might current higher ahead steering and buyback extra shares to spice up the inventory value, in keeping with Financial institution of America.

The agency reiterated a purchase score on the inventory with a $150 value goal, which represents about 61% upside for traders from Monday’s closing value of $93.38.

“Whereas we’re upset in YTD Expedia inventory efficiency, we see alternative for upside for the inventory based mostly on realization of potential VRBO worth (which might require modifications in administration disclosure), robust FCF technology to purchase again inventory, and shutting the low cost vary to Reserving to historic averages,” BofA analysis analyst Justin Publish wrote on Monday.

— Brian Evans

Threat-averse traders have taken their largest place of bonds relative to shares in 14 years, in keeping with the most recent Financial institution of America International Fund Managers survey.

The April survey confirmed that portfolios collectively are a internet 10% chubby on bonds, a degree not seen since March 2009 when the fairness market bottomed amid the Nice Monetary Disaster. Fairness allocations are a internet 29% underweight.

That discovering is a part of an general cautious stance, with money ranges holding at 5.5% of portfolios and above the 5% BofA contrarian “purchase” sign for 17 straight months. The survey confirmed {that a} internet 63% of traders anticipate a weak economic system forward, with a credit score crunch and world recession as the highest tail dangers.

Consequently, a plurality of traders anticipate the Federal Reserve to start slicing rates of interest within the first quarter of 2024.

—Jeff Cox

Twenty-four shares within the S&P 500 hit highs in Tuesday’s buying and selling session not seen in no less than a 12 months:

• Omnicom Group buying and selling at all-time excessive ranges again via its historical past to 1984
• Reserving Holdings buying and selling at all-time highs again to its IPO in Apr, 1999
• Chipotle buying and selling at ranges not seen since November 2021
• McDonald’s buying and selling at all-time highs again to its IPO in 1965
• GE Healthcare Applied sciences buying and selling at all-time highs again to its spinoff from GE in Dec, 2022
• Basic Electrical buying and selling at ranges not seen since January 2018
• Lockheed Martin buying and selling at all-time excessive ranges again to their merger of Martin Marietta and Lockheed in 1995
• Nvidia buying and selling at ranges not seen since March 2022

Workplace area firm WeWork, in the meantime, was buying and selling at all-time lows again to its SPAC merger in October 2021. Commerce Bancshares and renewable power firm Enviva, additionally outdoors of the S&P 500, hit lows not seen since November 2020 and March 2020, respectively.

Software program giants Oracle, Salesforce and Nvidia had been among the many shares notching new highs, with Oracle buying and selling at ranges not seen since December 2021 and Salesforce and Nvidia buying and selling at ranges not seen since April and March 2022, respectively. Shares of Nvidia had been up 2.9% noon after HSBC double-upgraded the chip maker’s inventory to purchase from scale back.

— Pia Singh, Chris Hayes

Goldman Sachs‘ combined quarter exhibits a lingering hangover from its ill-fated foray into client banking.

The corporate, in unwinding its client efforts, offloaded a piece of its Marcus client loans, leading to a $470 million income hit that drove its topline miss.

However the transfer boosted quarterly earnings by a whopping $1.20 per share as a result of it allowed the financial institution to launch $440 million in reserves for mortgage losses, Mike Mayo of Wells Fargo mentioned Tuesday in a analysis word.

So its not stunning that whereas revenue of $8.79 a share topped the $8.10 Refinitiv estimate, shares of the financial institution had been final down 2%.

—Hugh Son

Shares of Lockheed Martin gained 3% earlier than the bell after the aerospace and protection contractor beat Wall Road’s expectations within the first quarter and reaffirmed its full-year steering. 

Lockheed Martin recorded $15.1 billion in internet gross sales for the primary quarter of 2023, in comparison with $15 billion in the identical interval final 12 months. The weapons maker reported adjusted earnings per share of $6.43, above the $6 estimate from analysts surveyed by FactSet. The corporate mentioned first quarter income totaled $12.22 billion, beneath the $12.79 billion consensus estimate from analysts polled by Refinitiv. 

Throughout the first quarter, Australia confirmed it will purchase 40 Black Hawk army helicopters made by Lockheed from the U.S. for about $1.96 billion, and Lockheed expressed its hopes to ship extra F-35 fighter planes to the nation. Canada additionally mentioned in January that it will purchase 88 F-35 jets from Lockheed in a $14.2 billion venture to interchange its growing older fleet. Lockheed additionally secured a contract in February with the U.S. Navy value greater than $2 billion to combine hypersonic strike functionality onto floor ships.

“We stay on observe to attain our full 12 months 2023 monetary steering and proceed our sturdy method to returning capital to shareholders,” Lockheed Martin CEO Jim Taiclet mentioned in a press launch.

— Pia Singh

Shares of Southwest Airways fell 2% after the airline mentioned it has paused all departing flights because of technical points.

Greater than 1,200 flights, or 30% of Southwest’s scheduled flights, had been delayed as of 10:48 a.m. ET, in keeping with flight-tracking web site FlightAware.

— Leslie Josephs, Samantha Subin

Financial institution of America CEO Brian Moynihan mentioned his agency expects a gentle financial downturn.

“We earned good returns for you … We did this because the economic system slowed and bear in mind our analysis group continues to foretell a shallow recession that can happen starting within the Q3 of 2023,” Moynihan mentioned on an earnings name Tuesday.

— Yun Li

Some chip shares rose Tuesday, after HSBC double-upgraded Nvidia shares to purchase from scale back.

The agency mentioned that “Nvidia’s unimaginable AI pricing energy (is) not absolutely priced in,” and that synthetic intelligence will present a big increase to chip costs. The transfer lifted shares about 3%.

Different semiconductor corporations noticed their shares rise after the optimistic improve. ON Semiconductor Corp and Superior Micro Units had been up 1.3% and 0.8%, respectively. Shares of Utilized Supplies additionally gained 0.45%. 

A slew of healthcare and pharmaceutical shares declined Tuesday, dragging down the Dow Jones Industrial Common 113 factors as of 10:06 a.m. EST.

Johnson & Johnson led the declines, falling 2% regardless of topping earnings expectations for the current quarter on the highest and backside traces.

The pharmaceutical firm reported a $68 million, or lack of 3 cents per share because of fees associated settling its talc claims. J&J was the second worst performer within the 30-stock-index.

UnitedHealth was additionally among the many worst Dow performers, falling 1%. Walgreens Boots Alliance and Amgen fell a little bit beneath 1% every.

— Samantha Subin

Some shares that originally gained within the premarket on the again of better-than-expected earnings outcomes turned detrimental in early morning buying and selling.

That included Financial institution of America shares, final buying and selling down 0.1% Johnson & Johnson misplaced 2.4% even after the drug maker topped earnings expectations and lifted its full-year steering.

— Samantha Subin

Shares had been combined on the market open Tuesday.

The S&P 500 rose 0.3%, whereas the Dow Jones Industrial Common misplaced 61 level, or 0.13%. The Nasdaq Composite added 0.5%.

— Samantha Subin

Sunrun jumped 4.1% in premarket buying and selling after KeyBanc mentioned the beat-down photo voltaic inventory might be due for a rally.

Analyst Sophie Karp upgraded Sunrun chubby from sector weight. Her $27 value goal implies an upside of 31.3% from the place the inventory completed Monday’s session.

The inventory has misplaced 14.4% this 12 months regardless of the S&P 500 gaining 8.1% in the identical interval. Shares have been overwhelmed down for the reason that Federal Reserve started its rate of interest hike marketing campaign, however she mentioned there’ll possible higher days forward.

“Shares of residential photo voltaic corporations, together with RUN, underperformed materially for the reason that starting of the tightening cycle, and we acknowledge that the shares have been visibly cheap for a while now,” she mentioned in a word to shoppers Monday. “Nevertheless, we imagine that we’ve got seen the worst of the tightening cycle, and due to this fact the sentiment ought to be bottoming at these ranges.”

CNBC Professional subscribers can click on right here to learn extra.

— Alex Harring