5 Things to Know Before the Stock Market Opens

U.S. stock futures are pointing mostly higher to end the week; Netflix (NFLX) shares are surging after the streaming giant grew subscribers and beat analysts’ estimates; CVS Health (CVS) shares are tumbling after it replaced its CEO; Apple (AAPL) shares are moving higher on strong iPhone 16 sales in China; and Nvidia (NVDA) stock continues to climb after Taiwan Semiconductor Manufacturing Co. (TSM) earnings showed strong demand for artificial intelligence (AI) technology. Here’s what investors need to know today.

1. US Stock Futures Pointing Mostly Higher To End Week

U.S. stock futures are pointing mostly higher to end the week, with the Nasdaq rising by 0.5% as Netflix (NFLX) helps lead tech stocks higher. The S&P 500 also is edging higher while the Dow Jones Industrial Average is little changed after closing Thursday at a record high for the third time this week. Crude oil futures are lower, while gold futures are higher. Treasury yields are edging higher, with the 10-year’s rising to around 4.1%.

2. Netflix Stock Surges as Streaming Giant Grows Revenue, Subscriber Base

Shares of Netflix (NFLX) are jumping by more than 6% in premarket trading after it posted gains on the top and bottom lines that beat analysts’ expectations. Netflix’s 15% year-over-year increase in quarterly revenue to $9.83 billion and earnings per share (EPS) of $5.40 both came in better than consensus estimates from Visible Alpha. The streaming giant also reported a 14% increase in subscribers to 282.72 million, just above expectations, and projected that its annual revenue would grow by 15%, at the higher end of its previously announced range.

3. CVS Stock Plummets as It Replaces CEO

CVS Health (CVS) stock is tumbling 12% in premarket trading after the pharmacy and healthcare giant announced the replacement of Chief Executive Officer (CEO) Karen Lynch with David Joyner, a longtime company veteran who most recently ran Caremark, its pharmacy benefit manager (PBM). CVS also provided preliminary guidance for third-quarter profit, projecting earnings per share (EPS) between 3 cents and 8 cents, and adjusted EPS of $1.05 to $1.10, well below expectations of $1.27 and $1.69, respectively. The news comes after CVS Health reportedly has been considering breaking up its retail pharmacies and Aetna health insurance operations.

4. Apple Stock Rises as iPhone Sales Jump in China

Sales of Apple’s (AAPL) newly launched iPhone 16 in China are 20% better than those of its previous model, with sales of its top-end phones improving by 44%, according to a Bloomberg report. The report cited three weeks of data from Counterpoint Research on iPhone 16 sales from its September release, comparing them with sales from the same time period after Apple’s iPhone 15 release. Shares of Apple are roughly 2% higher in premarket trading as they near record highs.

5. Nvidia Stock Climb Further After TSMC Results Show Strong AI Demand

Nvidia (NVDA) shares are continuing to climb in premarket trading after the chipmaker touched an all-time intraday high yesterday. Nvidia’s shares rose on the strong earnings report from Taiwan Semiconductor Manufacturing Co. (TSM), which showed that demand for artificial intelligence (AI) products remained strong. Nvidia shares are 1% higher while TSMC shares are dipping by 0.5%. 

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