Bearish markets, determined oil & Netflix’ glory days | Calamatta Cuschieri

European markets showed weakness after London closed lower on poor performances by banking and mining stocks. British banks such as Barclays fell due to the disappointing trading figures from Goldman Sachs in the US, while miners slipped after Rio Tinto cut its full-year guidance for iron ore shipments. The best performer is British Land Company, up 3.2% after it announced a £300m share buyback plan, followed by Royal Mail, which is up almost 3% after the company reported a 1% rise in revenues in the three months to 25 June.

In the US, the S&P and the Dow were lower in late morning trading on Tuesday as shares of Bank of America slipped 1.6 percent weighing on the S&P, while Goldman Sachs' 2.6 percent fall from tepid earnings dragged the Dow. The healthcare sector was also under pressure, falling 0.52 percent after the healthcare bill to replace Obamacare sank in the Senate, as Republicans remained divided on how to repeal and replace the Affordable Care Act. Losses on the Nasdaq however were limited by a 12 percent jump in Netflix to a record high, following the video streaming company's robust subscriber growth.

Oil boosts as OPEC cuts

Oil prices got a boost Tuesday from a report that Saudi Arabia is considering cutting crude exports, even as the latest data showed U.S. production trending higher this year. Saudi Arabia is considering a 1 million barrel-a-day cut to its crude exports, according to a recent note to clients from Bill Farren-Price, a consultant at Petroleum Policy Intelligence. Farren-Price said the move would offset the rise in Libyan and Nigerian supplies.

August West Texas Intermediate crude rose 32 cents, or 0.7%, to $46.34 a barrel on the New York Mercantile Exchange, but traded off the session’s high of $46.92. September Brent gained 41 cents, or 0.9%, to $48.83 a barrel on London’s ICE Futures exchange. A sharply weaker US dollar Tuesday also contributed to gains for oil, which is traded in the greenback.

Netflix in record territory

Shares of Netflix Inc. rocketed 9.1% to open well into record territory Tuesday, as investors and analysts cheered the video streaming service's second-quarter results. The company added 5.2 million memberships during the second quarter compared with the Wall Street consensus of 3.2 million driven by international subscriber growth.

The streaming giant is one of the market's best-performing names as its shares have rallied more than 30 percent this year through Monday versus the S&P 500's 10 percent return. As Netflix has a "growing distribution ecosystem and expanding addressable base, we believe that Netflix remains on track in building out an unmatched global entertainment platform," Goldman's Heath Terry wrote in a note to clients Tuesday.

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This article was issued by Peter Petrov, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.