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6-straight weeks of gains were sealed across the major averages in New York on Friday with both the Dow and S&P500 setting fresh records at the closing bell.

Over the week, the Dow and S&P500 gained 0.96% respectively, while the Nasdaq added 0.8%, with Q3 earnings results being the driver of gains throughout the last trading week.

Netflix shares rose 11% on Friday after the streaming giant beat Wall St estimates for earnings and revenues for Q3 and reported a 35% jump in ad-tier memberships on the prior quarter. Of the more than 70 companies that have reported from the S&P500 so far, 75% have beaten earnings expectations according to FactSet.

The small cap space once again outshone the major players last week with the Russell 2000 index ending the week 2% higher.
Over in Europe on Friday markets closed mostly higher marking a second straight week of gains boosted by a rise in luxury brands. The STOXX600 rose 0.21%, Germany’s DAX added 0.38%, the French CAC gained 0.39% and, in the UK, the FTSE100 ended the day down 0.32%.

Gucci owner Kering rose 3.5% on Friday while Burberry rose 0.5% as investors saw Chinese stimulus as a boost for demand outlook for luxury European brands in China.

Across the Asia markets on Friday, markets rebounded to close higher as stronger-than-expected GDP data in China boosted investor optimism. China’s GDP grew 4.6% in Q3 compared to the same period a year earlier which beat economists’ expectations but was a slight fall from the 4.7% expansion reported in Q2.

Retail sales in China also beat expectations for September with a rise to 3.2% YoY while China’s industrial output also grew faster than expected at 5.4%. China’s CSI index rose 3.62% on Friday, Japan’s Nikkei gained 0.2%, South Korea’s Kospi index fell 0.6%, and Hong Kong’s Hang Seng rose 3.61%.

Locally on Friday, the ASX200 fell 0.87% as a sharp sell off in utilities stocks weighed on the market, while every sector closed the day in the red. The Aussie sell-off was on the back of China’s economic data out on Thursday indicating worsening economic slow down out of the world’s second largest economy, despite stronger data out on Friday.

Flight Centre tanked 20% on Friday after the company released a trading update outlining a profit downgrade was imminent.

What to watch today:

• Ahead of Monday’s Trading Session the SPI futures are anticipating the ASX to open the day up 0.53% on the back of global market strength on Friday.
• On the commodities front this morning, oil is trading 2.05% lower at US$69.22/barrel, gold is up 1.02% at US$2721/ounce, and iron ore is flat at US$105.37/tonne.
• The Aussie dollar has slightly weakened against the greenback to buy US$0.67, 100.34 Japanese Yen, 51.41 British Pence and NZ$1.10.

Trading Ideas:

• Bell Potter has downgraded the rating on Lynas Rare Earths (ASX:LYC) from a buy to a hold rating and have reduced the 12-month price target on the company from $8.30 to $8 heading into the release of the company’s quarterly production update. The analyst has estimated production of NdPr to fall 5% QoQ and revenue of $121m down 12% QoQ after management guided to a slow start to FY25 amid the planned shut down towards the end of CY24 and delay in the Mt Weld expansion.
• And Trading Central has identified a bearish signal on Paragon Care (ASX:PGC) following the formation of a pattern over a period of 16-days which is roughly the same amount of time the share price may fall from the close of 47cps to the range of 38-40cps according to standard principles of technical analysis.