What's Going On With Netflix Shares
Netflix Inc (NASDAQ:NFLX) shares are trading higher by 3.60% to $310.08 Tuesday morning after B of A Securities reinstated coverage on the stock with a Buy rating and $370 price target.
Netflix shares are also seeing strength Tuesday morning following key economic data. Both stocks are trading higher in sympathy with the broader market after October PPI data showed a smaller-than-expected rise in wholesale prices. This has helped ease some inflation concerns and has raised hopes of softer Fed policy.
Additionally on Tuesday morning, the U.S. 10-year note fell to the 3.79%-level, marking a new 1-month low. When interest rates otherwise rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
What Happened With PPI Data?
On the economic front, the Labor Department's wholesale price inflation report for October showed that the headline producer price index rose 0.2% from the previous month compared to expectations for a 0.4% increase. The year-over-year rate cooled off to 8% from 8.3%.
This data can be viewed as important given producer prices could be seen as a leading indicator for consumer prices.
Per the Bureau of Labor Statistics, in October, the rise in the index for final demand can be attributed to a 0.6% advance in prices for final demand goods. In contrast, the index for final demand services decreased 0.1 percent. Prices for final demand less foods, energy, and trade services advanced 0.2% in October following a 0.3% rise in September. For the 12 months ended in October, the index for final demand less foods, energy, and trade services increased 5.4%.
According to data from Benzinga Pro, Netflix has a 52-week high of $700.99 and a 52-week low of $162.71.