Netflix reported higher revenue and profit for the third quarter, driven by membership growth, increased ad revenue and price hikes. Netflix’s revenue rose 17% to $11.5 billion in the third quarter from the same period a year earlier, just below its own forecast for the period. Net income increased nearly 8% to $2.5 billion, below the $2.98 billion it expected. Its operating margin of 28% was short of its forecast, which the company attributed to an expense related to a dispute with Brazilian tax authorities. The company said it would have topped its margin forecast for the period absent that issue. Netflix cut its expected operating margin for the year to 29% from 30% as a result of the Brazilian tax matter. Shares dropped as much as 6% in after-market trading.

Despite staging a recovery in the final hour of the day's trading session, the Swiss market ended marginally down on Tuesday. The benchmark SMI, which briefly emerged above the flat line after a slightly negative start, spent the rest of the day's session in the red. The index settled at 12,622.70, recording a loss of 12.32 points or 0.1%. Swatch Group ended lower by about 3%. Nestle closed 1.6% down, and Julius Baer drifted down by 1.02%. UBS Group, ABB and Galderma Group lost 0.7 to 0.9%. Sandoz Group, VAT Group and Roche Holding ended marginally down. Sonova Holding rallied 3.7% after the company announced the expansion of its AI leadership in hearing care with the launch of the Infinio Ultra Sphere and an advanced Infinio hearing aid line at the EUHA 2025. Swiss Re and Zurich Insurance gained 1.3% and 1.01%, respectively. Lonza Group, Straumann Holding, Holcim, Amrize, Geberit, Partners Group, Kuehne + Nagel , Logitech International, Alcon and Givaudan gained 0.5 to 1%. In economic news, data from the Federal Customs Administration showed Switzerland's foreign trade surplus decreased in the third quarter, dropping to CHF 10.2 billion, from CHF 12.6 billion in the second quarter. In the same period last year, the surplus was CHF 12.1 billion. In nominal terms, exports fell 3.9% over the quarter versus a 5.2% decline in the June quarter. Imports also fell at a slower pace of 0.6 %, following a 6.5% decrease in the second quarter.

Europe
European markets closed mostly higher on Tuesday, supported by gains in defense sector amid renewed concerns about tensions in the Middle East, and a lack of progress in Russia-Ukraine peace efforts. Slightly easing U.S.-China trade tensions, and expectations of a resolution to the government shutdown in the U.S. aided sentiment. The FTSE 100 index of the U.K. market is modestly higher on Tuesday with investors picking up stocks ahead of quarterly earnings announcements from big name companies, due from this week. Slightly easing U.S.-China trade tensions appear to be aiding sentiment a bit. The pan European Stoxx 600 gained 0.21%. The U.K.'s FTSE 100 climbed 0.25%, Germany's DAX ended higher by 0.29%, and France's CAC 40 climbed 0.64%. Switzerland's SMI edged down by 0.1%. Among other markets in Europe, Austria, Belgium, Finland, Greece, Ireland, Norway and Sweden ended higher. Denmark, Iceland, Poland, Portugal, Russia, Spain and Turkiye closed weak. Czech Republic and Netherlands ended flat. In the UK market, Segro climbed 2.85%. The warehousing group has delivered a strong third quarter, supported by improving occupier sentiment and increased pre-letting activity. Melrose Industries surged 5.3%. JD Sports Fashion gained 3%. Whitbread, WPP, Persimmon, Pearson, Auto Trader Group, Burberry Group, Berkeley Group Holdings, Rentokil Initial, Beazley and Relx gained 1.5 to 2.85%. Fresnillo plunged 12.2%. Endeavour Mining tanked 9.7%. Entain, Anglo American Plc., Antofagasta, British American Tobacco, Glencore and Metlen Energy & Metals lost 1 to 3.2%. In the German market, MTU Aero Engines climbed about 5%. Infineon Technologies surged 3.3%. Merck, Rheinmetall, Symrise and Vonovia gained 1 to 1.8%.

United States
After moving notably higher over the two previous sessions, stocks turned in a relatively lackluster performance during trading on Tuesday. The Nasdaq and the S&P 500 spent the day bouncing back and forth across the unchanged line, although the narrower Dow showed a more significant increase to reach a new record closing high. The Dow pulled back well off its best levels of the day but still closed up 218.16 points or 0.5 percent to 46,924.74. The S&P 500 crept up 0.22 points or less than a tenth of a percent to 6,735.35, while the Nasdaq dipped 36.88 points or 0.2 percent to 22,953.67. The advanced by the Dow partly reflected a sharp increase by shares of 3M (MMM), with the multinational conglomerate spiking by 7.7percent after reporting better than expected third quarter results. Beverage giant Coca-Cola (KO) also surged by 4.1 percent after reporting third quarter results that exceeded analyst estimates on both the top and bottom lines. Dow components Salesforce (CRM), Amazon (AMZN) and Sherwin-Williams (SHW) also posted significant gains on the day. Meanwhile, the lack of direction shown by the broader markets came as traders took a breather following the recent upward move. While the corporate earnings season is off to a positive start, traders may have been reluctant to continue buying stocks amid lingering concerns about U.S.-China trade tensions and the ongoing government shutdown. Most of the major sectors ended the day showing only modest moves, although oil service stocks moved sharply higher, driving the Philadelphia Oil Service Index up by 2.3 percent. Halliburton (HAL) helped to lead the sector higher, soaring by 11.6 percent after reporting better than expected third quarter results.

Asia
Following gains in previous days, some profits were taken on the stock markets in East Asia on Wednesday. Overall, the trend is mixed. Hong Kong is down 1.3 per cent, Shanghai 0.4 per cent. The Nikkei 225 in Tokyo is holding steady after its mainly politically driven rally to new record highs, rising minimally to 49,358 points. The Kospi in Seoul is also holding its ground.

Bonds
In the U.S. bond market, treasuries extended the upward move seen over the course of the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.3 basis points to a one-year closing low of 3.963 percent.

Analysis
UBS lowers Volvo target to SEK 318 (331) – Buy
UBS raises Jenoptik target to EUR 21 (18.50) – Neutral
ING raises Arcelor target to EUR 38 (34) – Buy

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