Stock Market Today Mid-Morning Updates
On Wednesday morning, the Dow Jones Industrial Average recovered by 72 points as of 11:12 am EST. This could be attributed to Netflix (NASDAQ: NFLX) reporting better-than-expected second-quarter earnings results. Earnings this morning from top companies such as Biogen (NASDAQ: BIIB), Abbott Laboratries (NYSE: ABT) and ASML Holding N.V. (NASDAQ: ASML) reported early morning Wednesday, while investors anxiously await Tesla, Inc. (NASDAQ: TSLA) will report after the market closes today.
Shares of BIIB stock moved lower in Wedneday’s trading session. Shares are currently trading at $211.34 a share, down 4.05% on the day. The company beat revenue estimates. They also reported an adjusted profit of $5.25 a share for the quarter. This beat the Street’s consensus estimate of $4.06 per share, following the company reporting better-than-expected quarterly revenue and earnings. While shares of ASML stock are up over 1.42% during Wednesday morning’s trading session. This comes after the firm announced a beat on earnings, but the comapny also cut its revenue guidance.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 1.34% today while Microsoft (NASDAQ: MSFT) is also moving higher by 1.21%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher on Wednesday. Among the Dow financial leaders, shares of Visa (NYSE: V) slid by 0.34% while Goldman Sachs (NYSE: GS) is also up by a modest 0.41%.
Shares of EV leader Tesla (NASDAQ: TSLA) are up by 0.60% on Wednesday morning. The EV maker is set to report its second quarter earnings after the market closes on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) are up by 2.81%. Lucid Group (NASDAQ: LCID) is trading higher by 1.86% on Wednesday. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are both trading mixed today.
Dow Jones Today: U.S. Treasury Yield Drops Slightly Back Under 3%
Following the stock market opening on Wednesday, the S&P 500, Dow, and Nasdaq are trading higher at 0.64%, 0.11%, and 1.51%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) has increased by 1.45% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 0.76%. The benchmark 10-year U.S. Treasury yield is moving slightly lower on Wednesday to 2.96%. This could potentially end a two-day win streak. In other news, prices of U.S. oil have pulled back, dropping to near 2% during Wednesday morning’s session.
Netflix Shares Jump After Reporting Better-Than-Expected Earnings
Late Tuesday, the streaming giant Netflix reported better-than-expected second quarter fiscal earnings. This caused its share price to jump over 4% during Wednesday morning’s trading sesssion at $210.32 a share. In the report, the company showed it earned $3.20 a share, while notching in $7.97 billion in sales for the quarter. This beats Wall Street’s consensus estimates of $2.95 a share, with sales of $8.03 billion. These numbers reflect an 8% year-over-year increase in earnings, while sales increased by 9%.
Furthermore, Netflix reported it lost 970,000 subscribers for the quarter. This contributed to the increase in share price we’re seeing this on Wednesday because just three months ago the company estimated it would lose 2 million subscribers for the quarter. This was due to increased competition in the marketplace, and price increases.
Co-CEO of Netflix Reed Hastings said this in his note to shareholders, “Q2 was better than expected on membership growth, and foreign exchange was worse-than-expected (stronger US dollar), resulting in 9% revenue growth (13% constant currency). Our challenge and opportunity is to accelerate our revenue and membership growth by continuing to improve our product, content, and marketing as we’ve done for the last 25 years, and to better monetize our big audience. We’re in a position of strength given our $30 billion-plus in revenue, $6 billion in operating profit last year, growing free cash flow, and a strong balance sheet.“
Shares of NFLX stock have been beat up pretty bad in the first of this year down 64.59% year-to-date. Given the positivity around this earnings report, could it be enough for you to add NFLX stock to your watchlist?