- Procter & Gamble to increase sales forecast for the financial year
- IBM benefits from an optimistic forecast, the results for the first quarter are better
- Netflix is down after losing subscribers in the first quarter
- Indices: Dow up 0.71%, S&P down 0.06%, Nasdaq up 1.22%
April 20 (Reuters) – Technology Nasdaq fell on Wednesday as a surprise drop in Netflix subscribers weighed on both the streaming giant and other high-growth companies that investors fear could face similar problems. productivity after a pandemic.
In contrast, the Dow with blue chips was brought in for the second time in a row higher than the positive profits of consumer giant Procter & Gamble (PG.N) and IT firm IBM Corp (IBM.N). The duo increased by 2.7 and 7.1%, respectively. Read more
Netflix Inc (NFLX.O) fell 35.1%, its biggest one-day decline in more than a decade after blaming inflation, the war in Ukraine and fierce competition for declining subscribers and predicting deeper losses in the future. Read more
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The effects of the wave were felt both by the names of financial technologies and by companies whose conditions were thought to be driven by pandemic trends such as blocking measures.
Streaming colleagues Walt Disney (DIS.N), Roku (ROKU.O) and Warner Bros Discovery (WBD.O) all fell by more than 5.5%, while loved ones staying at home Zoom Video Communications (ZM.O) ), Doordash (DASH.N) and Peloton Interactive (PTON.O) saw their shares fall between 6% and 11.3%.
Suffering financial indicators include PayPal Holdings Inc (PYPL.O) and Block Inc (SQ.N), both of which fell more than 8.5%. Marqeta Inc (MQ.O) and SoFi Technologies Inc (SOFI.O) fell 5.6% and 6.2% respectively.
“With profits moving so far, it’s getting harder to achieve this next small increase and it’s harder to get in the late cycle,” said Jason Pride, chief investment officer of private wealth at Glenmede.
“I think the market is starting to understand that and will have to understand it as we go through the year.
Market-leading technologies and growth stocks have struggled this year as investors worry that rising interest rates will reduce their future profits. The Nasdaq has fallen nearly 14% so far this year, while the S&P 500 benchmark is down 6.4%.
Overall, the profit season has started strong. Of the 60 companies in the S&P 500 index that have reported results so far, 80% have exceeded profit expectations, according to Refinitiv. Usually 66% exceed the estimates.
Trader trades on the New York Stock Exchange (NYSE) in Manhattan, New York, USA, April 11, 2022. REUTERS / Andrew Kelly / File Photo
The Dow Jones Industrial Index (.DJI) rose 249.59 points, or 0.71%, to 35,160.79, the S&P 500 (.SPX) lost 2.76 points, or 0.06%, to 4,459.45 and the Nasdaq Composite fell (.1IXIC, or 9 points). 1.22% to 13,453.07.
The communications services sector (.SPLRCL) declined 4.1%, although eight of the 11 major sectors of the S&P 500 won, led by the Real Estate Index (.SPLRCR), which peaked at 4 January. ) was right behind him, climbing to a second consecutive record.
Meanwhile, the latest data on the Federal Reserve’s plans to tighten monetary policy was released this afternoon.
His “Beige Book” shows that the US economy grew at a moderate pace from February to early April, while San Francisco Federal Reserve President Mary Daly said he believed the case for raising interest rates by half a percentage point next month is “finished”. Read more
Yields on 10-year treasury bonds fell to 2.85% after a stormy rally, bringing it closer to the key level of 3% earlier in the session.
Tesla Inc (TSLA.O) fell 5% but traded higher after posting record deliveries and higher revenue in its first quarter results. Read more
Investors were concerned about the ability of the electric car maker to meet its ambitious 2022 delivery target after its largest plant in Shanghai closed as part of a blockade of the city against COVID-19.
United Airlines Holdings Inc (UAL.O) rose 1.2%, helping the S&P 1500 Airlines (.SPCOMAIR) index reach its sixth increase in seven sessions. Shares of United fell slightly after earnings after the closing bell. Read more
The volume of stock exchanges in the United States is 10.85 billion shares, compared to an average of 11.61 billion for the entire session over the past 20 trading days.
The S&P 500 publishes 70 new 52-week highs and three new lows; The Nasdaq Composite recorded 88 new highs and 164 new lows.
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Report by Bansari Mayur Kamdar, Sruti Shankar and Amruta Handekar in Bengaluru and David French in New York; Edited by Margerita Choi and Aditya Sony
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