Dow Leaps, NASDAQ Stumbles with Netflix - InvestingChannel

Dow Leaps, NASDAQ Stumbles with Netflix

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 index gained 249.59 points to close at 35,160.79.

The S&P 500 tailed off 2.76 points to 4,459.45.

The NASDAQ Composite dropped 166.59 points, or 1.2% to 13,453.07, but was still on pace for a weekly gain.

Netflix fell 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, down 63.1%. 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 fell 5.5%, Roku and Warner Bros. Discovery each lost 6.1%. Paramount lost 8.6%.

It also scared investors away from buying other technology stocks ahead of earnings. Tesla, which is scheduled to report earnings after the bell, fell 4.9%. Amazon and Salesforce lost more than 2%.

On the flipside, Procter & Gamble gained 2.6% 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 7.1% following a beat on earnings and revenue.

Treasury prices dipped sharply, raising yields to 2.84%, from Tuesday’s 2.94%. Treasury prices and yields move in opposite directions.

Oil prices were unchanged from Tuesday at $102.56 U.S. a barrel.

Gold prices poked up 40 cents to $1,959.40 U.S. an ounce.

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