Nasdaq rises on positive earnings signals as inflation concerns approach

Nasdaq rises on positive earnings signals as inflation concerns approach

  • Netflix is ​​increasing its customer growth forecast
  • Baker Hughes falls on a bigger quarter 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) – Technology-heavy Nasdaq climbed above 1% on Wednesday as investors digested recent earnings as positive signals about the economy, albeit growing concerns about inflation and a tightening Fed.

The S&P 500 rose 0.39% while the Dow Jones Industrial Average fell 0.12%.

Netflix Incs (NFLX.O) shares jumped 6% after the company predicted that it would return to customer growth during the third quarter, while posting a less than expected 1 million drop in subscribers in the second quarter. read more

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Other high-growth stocks increased after the forecast from the electricity service provider. The shares of Apple Inc (AAPL.O), Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O) and Meta Platforms Inc (META.O) increased by between 1% and 3.6%.

The S&P 500 Technology Sector Index (.SPLRCT) rose 1.3%.

“Inflation is still a very strong assessment on investors’ minds … what we are seeing today are some positive earnings announcements that will allow investors to hang their hats on some positive news that should promise better for the rest of Q3 and 2022,” said Greg Bassuk, CEO Director of AXS Investments in Port Chester, New York.

“For Tesla, Netflix and some of these companies … investors are looking for announcements about the prospects these companies have for the balance sheet of 2022.”

The electric car manufacturer Tesla Inc (TSLA.O) added 0.6% ahead of its earnings report after the market closed.

Analysts expect that the overall S&P 500 result from year to year will grow by 5.9% in this reporting season, down from the estimate of 6.8% at the beginning of the quarter, according to Refinitiv data.

Continued inflation led the markets to price in as much as a 100 basis point increase in interest rates at the Fed’s forthcoming meeting next week, until some decision-makers signaled an increase of 75 basis points.

At 13:45 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 Composite (Nas.daq). IXIC) added 145.44 points, or 1.24%, to 11,858.59.

Trading remained volatile in thin volumes, with the CBOE Volatility Index (.VIX) last down 24.05 points to its lowest in over a month.

“Low volume has highlighted market movements historically, and although we have removed $ 10 or $ 15 trillion from global equities this year, there is still a lot of excess liquidity. Such low volumes of excess liquidity can still highlight movements,” said John Lynch, chief investment officer for Comerica Wealth Management. so.

The health insurance company Elevance Health Inc plunged 9% as the largest S&P percentage loser, as the company’s medical costs failed to go down in line with rival UnitedHealth Group Inc.

Baker Hughes Co. fell 7.8% when the oil field service provider reported a larger loss in the second quarter, while its adjusted profit also missed estimates. read more

Progress issues outperformed the NYSE by 1.55 to 1; on Nasdaq favored a ratio of 2.09 to 1 advance.

The S&P 500 posted a new 52-week high and 29 new lows; Nasdaq Composite recorded 24 new highs and 24 new lows.

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Reporting by Echo Wang in New York and Shreyashi Sanyal in Bengaluru; Additional reporting from Aniruddha Ghosh in Bengaluru; Edited by Sriraj Kalluvila, Shounak Dasgupta and Lisa Shumaker

Our standards: Thomson Reuters Trust Principles.

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