Closing Bell Overtime: 10/20/26

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Melissa Lee (0:59)

The Bells bring you an end to the trading day at the NYSC 3M, ringing the bell at the Nasdaq mid-pen. Bancorp closes out the trading session. Welcome to Closing Bell Overtime. We are live from Studio B at the Nasdaq market site. I'm Melissa Lee along with Mike Santoli. Socks higher across the board today, Dow gaining more than 500 points, S&P 500 up a quarter of a percent, Nasdaq turning lower here just by a fraction of a percent. The Russell 2000 with the biggest gain in more than two months.

Michael Santoli (1:22)

The hard hit AI trade mostly higher today, CoreWeave gaining a little more than 1% off its best levels of the day though. Bond yields falling early in the day, following some weaker than expected housing numbers, but creeping back higher to some degree as the trading session went on.

Melissa Lee (1:37)

The focus also on earnings, 3M jumping on its results and contributing to the Dow's gains, Northrop Grumman also gaining as it raised guidance, but General Motors had its worst day in more than a year following its report. We got some big names by the way reporting in just the next few minutes. Netflix do out any second now. SpaceX with only its second report is a publicly traded company. United Airlines also reporting will bring you all those earnings and analysis as soon as they cross. But let's begin with the first take on the close. It was certainly a broader market. I don't know if there's anything convincing in terms of changing the AI narrative though.

Michael Santoli (2:09)

Not so much. You know, there wasn't some kind of assertive response in semis at all. Most of the hardware food chain not doing much, even credit, you know, did not really repair very much of the damage from last week. So it's defensive. Low volatility, ETF, up more than 1%, health care up, although 70% of all volume to the upside. So you don't want to necessarily say that this was people really tensing up in advance of something nasty. You did see home builders up 2.7% on bad housing numbers. So they're trying to make a stand here, and banks finally did bounce as well, more than 1%.

Melissa Lee (2:42)

Yeah, and the Action Corps, we felt technical. I mean, it was interesting that it hit a new low here, but it sort of preserved that 60 level, which was the prior low. So that's good news. And on heavy volume, it managed to bounce higher. So even though it finished off the highs of the session, it still did sort of a heroic job in terms of trying to get off of the previous low there. Not convincing, but still at least no further technical damage.

Michael Santoli (3:04)

No further erosion. It probably is going to need the credit side to really firm up, maybe some kind of reassurance there before the stock can really get back.

Melissa Lee (3:13)

Yep. We got Netflix earnings. They are out right now. Julie Warsons got the numbers here. Julia.

Julia Boorstin (3:18)

Netflix shares are falling now down about 6% in after hours trading. The company's EPS for the quarter did beat expectations coming in at 87 cents versus the 82 cents expected. Revenue growth in the quarter of 12% to 12.87 billion is right in line with expectations. But the source of the stocks decline now down about 7%.

The company is guiding to fourth quarter revenues of 13.44 billion. That's just below the 13.52 billion expected. The company is saying they expect full year ad revenues of about 2.7 billion dollars. That's lower than the approximately 3 billion dollars previously forecast for the year. Now Netflix is saying its fourth quarter EPS will be impacted by restructuring with a negative impact of 120 basis points on margins. In the letter to shareholders, the co-CEOs addressing investor concern about engagement, about what they call view hours growth saying, quote, member response to our 2026 price increases is consistent with prior price changes in our expectations, an indicator that our engagement, which encompasses quantity, quality, and variety of viewing remains healthy, that we continue to deliver strong value to members. But we do seek to accelerate growth and view hours as well. Now the co-CEOs saying they're focused on delivering more entertainment value to members, leveraging technology to improve all aspects of the service, including by integrating more content like they do with the French Networks TF1, also improving monetization. Share is now down 6%.