• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Money Profit News
No Result
View All Result
Home Breaking News

Dow jumps 249 points on Wednesday, but the Nasdaq is dragged down by a big plunge in Netflix

by
April 20, 2022
in Breaking News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related Posts

DOJ says the U.S. and allies have frozen $30 billion of Russian elites’ assets

Goldman expects weak Tesla results, recommends these EV plays

Starz could turn into an ‘acquisition machine’ after Lionsgate spins it off

Germany seizes three Gazprom tankers in new blow for Putin – live updates

It was a divided market on Wednesday as traders evaluated a rush of first-quarter results. The Dow Jones Industrial Average rose on the back of strong earnings from Procter & Gamble, while the Nasdaq Composite was dragged down by an epic plunge in shares of one-time darling Netflix.

The 30-stock Dow was up 290 points, or 0.8%, and the S&P 500 was 0.1% higher. The tech-heavy Nasdaq Composite fell 0.9%, but was still on pace to end the week higher.

Netflix fell more than 35% after its quarterly results showed a loss of 200,000 subscribers in the first quarter, its first reported subscriber loss in more than 10 years. That was its biggest decline since 2004, and the streaming company is now the worst performing stock in the S&P 500 this year. The company’s quarterly results were followed by a wave of downgrades by 10 Wall Street analysts, who also cited its weak financial guidance.

The Netflix blow-up dragged shares of other streaming companies lower. Disney, Roku and Warner Bros. Discovery fell more than 4% each. Paramount lost 7%.

It also scared investors away from buying other technology stocks ahead of earnings. Tesla, which is scheduled to report earnings after the bell, fell about 3%. Amazon and Salesforce lost more than 2%.

On the flipside, Procter & Gamble gained more than 2% and helped lift the Dow after reporting better-than-expected results and hiking its full-year revenue guidance. IBM, another Dow component, rose more than 6% following a beat on earnings and revenue.

“Earnings will continue to be the key catalyst, said Ross Mayfield, investment strategy analyst at Baird. “Companies so far are highlighting strong demand across industry, despite inflation and supply chain pressures. While we expect this year to continue to be volatile, earnings strength and bearish sentiment is a really nice backdrop for a near-term pop.”

Roughly 12% of S&P 500 companies have reported first-quarter earnings thus far, with 80% of those names beating analyst expectations, according to FactSet. But the real story that’s behind the market’s tepid reaction during earnings so far is the lack of corporate guidance.

Beyond company earnings, investors were also keeping a close eye on the 10-year U.S. Treasury yield, which retreated Wednesday after touching 2.94%, its highest level since late 2018, on Tuesday.

“There seems to be some fatigue around rate hike and inflation discussion,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs. “The market has likely priced in the future of rate hikes, inflation is likely nearing a peak and I think there is some positive sentiment around earnings season. The consumer remains strong, spending is up regardless of sentiment, $2 trillion remains on the sidelines in savings, and corporations continue to show strength in pricing power and robust balance sheet.”

Stock picks and investing trends from CNBC Pro:

A brutal bond market sell-off wreaks havoc on one of fixed income’s most popular ETFs

Here’s how investors can make money in 2022, according to one asset manager

These are the stocks to own if a recession hits, Citi says

All the major averages saw strong gains on Tuesday, posting their best day since March 16. The Nasdaq Composite bounced back 2.15%, while the Dow Jones Industrial Average rose 499.51 points, or 1.45% and the S&P 500 gained 1.61%.

“Though growth may slow, this year could still be poised for a mid-digit S&P return,” Jablonski added. “Investors may be taking stock of that, and deploying cash versus locking in losses on cash due to inflation. If P/E levels continue to look reasonable at these levels, and earnings come through, this could be the catalyst for a positive second half pivot.”

Next Post

IBM stock has its best day in two years as analysts raise estimates

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

Goldman expects weak Tesla results, recommends these EV plays

by
June 29, 2022
0

With weak results likely ahead for Tesla , Goldman Sachs says it's time to invest in these companies tied to...

Read more

Goldman expects weak Tesla results, recommends these EV plays

DOJ says the U.S. and allies have frozen $30 billion of Russian elites’ assets

Starz could turn into an ‘acquisition machine’ after Lionsgate spins it off

Should I wait for real estate prices to crash before I buy a house? Here are 3 simple reasons why this housing downturn is nothing like 2008

Germany seizes three Gazprom tankers in new blow for Putin – live updates

Carnival Stock Could Fall to $0 in a Worst-Case Scenario, Analyst Says

Load More

All rights reserved by www.moneyprofitnews.com

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

moneyprofitnews