- Netflix gains on customer growth forecast
- Baker Hughes posts wider quarterly loss
- Tesla will report earnings after the market closes
- Dow down 0.12%, S&P 500 up 0.39%, Nasdaq up 1.24%
July 20 (Reuters) – The tech-heavy Nasdaq rose more than 1 percent on Wednesday as investors saw recent gains as positive signs for the economy despite rising concerns about inflation and Federal Reserve tightening.
The S&P 500 rose 0.39%, while the Dow Jones Industrial Average fell 0.12%.
Netflix Inc ( NFLX.O ) shares jumped 6 percent after the company forecast a return to customer growth in the third quarter, while reporting a smaller-than-expected 1 million drop in subscribers in the second quarter. Read more
Sign up now for FREE unlimited access to Reuters.com
I am registering
Other high-growth stocks extended gains after the streaming service provider’s forecast. Shares of Apple Inc ( AAPL.O ), Amazon.com Inc ( AMZN.O ), Microsoft Corp ( MSFT.O ) and Meta Platforms Inc ( META.O ) added between 1 percent and 3.6 percent.
The technology sector index S&P 500 (.SPLRCT) rose 1.3%.
“Inflation remains a very strong consideration on investors’ minds…what we’re seeing today is some positive earnings news, allowing investors to hang their hats on some positive news that should bode well for the remainder of Q3 and 2022 .” said Greg Bassuk, CEO of AXS Investments in Port Chester, New York.
“For Tesla, Netflix and some of these leading companies … investors are looking for messages about the outlook these companies have for 2022.”
Electric vehicle maker Tesla Inc ( TSLA.O ) added 0.6% ahead of its earnings report after the market closed.
Analysts expect the S&P 500’s total annual earnings to rise 5.9% this reporting season, down from a forecast of 6.8% at the start of the quarter, according to data from Refinitiv.
Runaway inflation initially led markets to raise interest rates by 100 basis points at the upcoming Federal Reserve meeting next week, while some policymakers signaled a 75 basis point increase.
At 1:45 p.m. ET the Dow Jones Industrial Average (.DJI) fell 37.45 points, or 0.12%, to 31,789.6, the S&P 500 (.SPX) gained 15.19 points, or 0.39 %, to 3,951.88, and the Nasdaq Composite (.IXIC) added 145.44 points, or 1.24%, to 11,858.59.
Trading remained choppy on light volume, with the CBOE Volatility Index (.VIX) last down 24.05 points to its lowest level in more than a month.
“Historically low volumes accentuate market movement, and even though we’ve wiped $10 or $15 trillion out of global equities this year, there’s still a lot of excess liquidity. So the low volume of excess liquidity can still accentuate moves,” John Lynch, chief investment officer at Comerica Wealth Management, said.
Health insurer Elevance Health Inc tumbled 9% as the S&P’s biggest loser as the company’s medical costs failed to fall in line with rival UnitedHealth Group Inc.
Baker Hughes Co tumbled 7.8 percent as the oil services provider posted a wider second-quarter loss, while its adjusted profit also missed estimates. Read more
Advancers outnumber decliners on the NYSE by a ratio of 1.55 to 1; on the Nasdaq, a ratio of 2.09 to 1 favors the advancers.
The S&P 500 hit one new 52-week high and 29 new lows; The Nasdaq Composite recorded 24 new highs and 24 new lows.
Sign up now for FREE unlimited access to Reuters.com
I am registering
Reporting by Echo Wang in New York and Shreyashi Sanyal in Bengaluru; Additional reporting by Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila, Shounak Dasgupta and Lisa Shumaker
Our standards: The Thomson Reuters Trust Principles.
Add Comment