Stock Market Update

[BRIEFING.COM] The major averages have stabilized near their opening levels, with the S&P 500 (+0.3%) holding a modest gain as six sectors trade higher. The communication services sector (-1.4%) is the weakest performer, pressured by disappointing reactions to earnings from Netflix (NFLX 65.58, -3.12, -4.53%) and AT&T (T 21.97, -1.45, -6.19%), along with continued weakness in Alphabet (GOOG 327.94, -8.46, -2.52%).

Netflix is trading at a new 52-week low after its better-than-expected Q3 earnings were overshadowed by disappointing fourth-quarter guidance and a reduction in its FY26 advertising revenue forecast to $2.7 billion from $3.0 billion. The results added to concerns about slowing revenue growth, particularly as management acknowledged delays in advertising initiatives and room for improvement in U.S. content engagement. AT&T is also sharply lower despite beating earnings and revenue estimates, as slower postpaid phone additions and weaker consumer fiber revenue per user tempered enthusiasm for its results.

Meanwhile, Meta Platforms (META 709.53, +15.28, +2.20%) is bucking the sector's weakness ahead of its earnings report after today's close, when investors will be looking for further insight into the company's AI investments and growth outlook.