US close: Dow Jones extends rally, Netflix weighs on Nasdaq

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Major indices turned in a mixed performance on Wednesday as Netflix shares weighed on the tech-heavy Nasdaq after revealing it had just seen the first decline in subscriber numbers since 2011 in Q1.

At the close, the Dow Jones Industrial Average was up 0.71% at 35,160.79, while the S&P 500 was 0.06% softer at 4,459.45, while the Nasdaq Composite saw out the session 1.22% weaker at 13,453.07.

The Dow Jones closed 249.59 points higher on Wednesday, extending gains recorded in the first session back from the Easter break.

Shares in streaming giant Netflix were down more than 35% on the session after the company reported the first fall in subscribers in over a decade. Group revenues were $7.87bn, compared to $7.71bn in the fourth quarter, while diluted earnings per share came in at $3.53. Global streaming paid memberships were 221.64m, down on the fourth quarter’s 221.84m and were expected to fall further in the second quarter to 219.64m.

Elsewhere, Procter & Gamble also reported earnings before the bell, with the consumer goods firm topping Wall Street expectations as price hikes drove higher razor and laundry detergent sales. Net sales rose 7% to $19.38bn, beating expectations for a print of $18.73bn.

Also in focus, the yield on the benchmark 10-year Treasury note eased back to 2.846% after hitting its highest level since December 2018 during the previous session, while West Texas Intermediate and Brent crude futures were broadly flat after sliding in the previous session on the back of the International Monetary Fund cutting its economic growth forecasts and warning of risks from higher inflation.

On the macro front, mortgage applications fell 5% week-on-week in the seven days ended 15 April, according to the Mortgage Bankers Association of America, with total applications coming in at nearly half of what they were a year earlier. Mortgage applications to purchase a home fell 3% on the week and were down 14% more than during the same week one year ago, while applications to refinance a property fell another 8% for the week and were 68% lower than the same week twelve months prior.

On another note, existing home sales fell 2.7% month-on-month to a seasonally adjusted annualised rate of 5.77m in March, according to the National Association of Realtors, the lowest since June 2020 and short of forecasts for a print of 5.8m. The decline marked the second consecutive month of falling home sales as the US housing market appeared to be feeling the impact of rising mortgage rates and inflation.

Dow Jones – Risers

International Business Machines Corporation (CDI) (IBM) $138.32 7.10%
Procter & Gamble Co. (PG) $163.65 2.66%
Home Depot Inc. (HD) $315.14 2.38%
Cisco Systems Inc. (CSCO) $53.02 2.30%
Walgreens Boots Alliance, Inc. (WBA) $46.54 2.06%
Unitedhealth Group Inc. (UNH) $546.01 1.55%
Goldman Sachs Group Inc. (GS) $341.06 1.52%
Coca-Cola Co. (KO) $65.96 1.37%
Caterpillar Inc. (CAT) $235.08 1.26%
Walmart Inc. (WMT) $159.63 1.26%

Dow Jones – Fallers

Walt Disney Co. (DIS) $124.57 -5.56%
Salesforce.Com Inc. (CRM) $186.23 -2.70%
Boeing Co. (BA) $183.55 -1.31%
Nike Inc. (NKE) $135.87 -0.86%
Apple Inc. (AAPL) $167.23 -0.10%
Dowdupont Inc. (DWDP) $30.52 0.00%
Honeywell International Inc. (HON) $230.94 0.00%
McDonald’s Corp. (MCD) $255.85 0.18%
3M Co. (MMM) $150.59 0.33%
JP Morgan Chase & Co. (JPM) $131.58 0.35%

S&P 500 – Risers

M&T Bank Corp. (MTB) $176.33 8.82%
International Business Machines Corporation (CDI) (IBM) $138.32 7.10%
Omnicom Group Inc. (OMC) $84.42 4.45%
Waters Corp. (WAT) $313.69 4.29%
Interpublic Group of Companies Inc. (IPG) $36.97 3.99%
NRG Energy Inc. (NRG) $41.27 3.93%
Centene Corp. (CNC) $88.98 3.48%
American Tower Corp (Reit) (AMT) $267.59 3.41%
Marathon Oil Corp. (MRO) $27.65 3.25%
Wabtec Corp. (WAB) $93.86 3.20%

S&P 500 – Fallers

Netflix Inc. (NFLX) $226.19 -35.12%
Paypal Holdings Inc (PYPL) $94.90 -8.45%
Meta Platforms Inc. (FB) $200.42 -7.77%
Walt Disney Co. (DIS) $124.57 -5.56%
Nasdaq Inc (NDAQ) $172.81 -4.55%
Halliburton Co. (HAL) $39.60 -4.14%
TripAdvisor Inc. (TRIP) $26.70 -4.13%
Charter Communications Inc. (CHTR) $535.96 -3.91%
Svb Financial Group (SIVB) $518.07 -3.54%
Carmax Inc. (KMX) $93.07 -3.34%

Nasdaq 100 – Risers

Intuitive Surgical Inc. (ISRG) $302.90 2.73%
Asml Holdings N.V. (ASML) $633.91 2.72%
Idexx Laboratories Inc. (IDXX) $513.39 2.50%
Hologic Inc. (HOLX) $78.18 2.49%
Henry Schein Inc. (HSIC) $91.06 2.41%
KLA-Tencor Corp. (KLAC) $345.59 2.30%
Cisco Systems Inc. (CSCO) $53.02 2.30%
Walgreens Boots Alliance, Inc. (WBA) $46.54 2.06%
PACCAR Inc. (PCAR) $87.60 1.98%
Seagate Technology Plc (STX) $85.76 1.94%

Nasdaq 100 – Fallers

Netflix Inc. (NFLX) $226.19 -35.12%
Paypal Holdings Inc (PYPL) $94.90 -8.45%
Meta Platforms Inc. (FB) $200.42 -7.77%
Qurate Retail Inc. (QRTEA) $4.35 -7.05%
JD.com, Inc. (JD) $53.75 -5.52%
NetEase Inc. Ads (NTES) $88.97 -5.00%
Tesla Inc (TSLA) $977.20 -4.96%
Mercadolibre Inc. (MELI) $1,080.16 -4.44%
Charter Communications Inc. (CHTR) $535.96 -3.91%
Baidu Inc. (BIDU) $122.31 -3.40%